Duty-free · Sourcing
Form B255, box by box: claiming Canada’s 0% LDCT on knitwear from Nepal
Canada charges 18% on cotton knit T-shirts, and 0% on the same T-shirt from Nepal under the Least Developed Country Tariff. The paper behind that 0% is one form, CBSA Form B255. Here is every box, the origin letter that differs between T-shirts and hoodies, the code your broker declares, and the shipping records CBSA can ask for.
Canada charges 18% on cotton knit T-shirts from most of the world, and 0% on the same T-shirt from Nepal under the Least Developed Country Tariff (LDCT). That 18-point gap rests on one sheet of paper: CBSA Form B255, the Certificate of Origin for textile and apparel goods from a least developed country. This guide goes through it box by box, then covers the three things that most often cost importers the 18%: the wrong origin letter, a broken shipping trail and a form nobody can find five years later. For the wider picture of the Canadian route, start with our Canada LDCT guide.
Who fills it in, and who cannot
CBSA’s instructions are plain: the form is completed and signed by the exporter in the LDC where the goods were finished, in full and legibly, and the importer must have it when the declaration is made. Field 1 must not name a trading house, freight forwarder or export broker. For our garments, the exporter is Trishakti Apparel in Gaindakot, so we complete and sign it. The person who signs must know the origin of the goods and have access to production records, so the form is signed at the factory, not by an agent.
The eight fields
| Field | What goes in it | For a typical order from us |
|---|---|---|
| 1 | Exporter’s business name, address and country | Trishakti Apparel, Gaindakot, Nepal |
| 2 | Importer in Canada: business name and address | Your company, as on the invoice |
| 3 | Means of transport and route, if known | Truck to Kolkata or Visakhapatnam, then sea to Vancouver, Montreal or Halifax |
| 4 | Markings and number of packages | Carton marks and count, matching the bill of lading |
| 5 | Description of the goods | Style numbers and, where known, the HS subheading (6109.10, 6105.10, 6110.20…) |
| 6 | Preference criterion for each good | C for T-shirts, B for polos and most hoodies (see below) |
| 7 | Number and date of the invoices covered | Our commercial invoice number and date |
| 8 | Exporter’s declaration, name, position, contact, signature and date | Signed by us, dated yyyy/mm/dd |
Field 7 ties the certificate to specific invoices, so we issue a B255 for each shipment rather than relying on one form for a season.
Field 6: B or C, the letter that matters
Canada’s rules of origin, in force since 1 January 2025, sort garments into lists, and the list decides the letter:
- Criterion C: T-shirts. Cotton and other T-shirts under HS 6109.10 and 6109.90 sit in Part A3, “T-Shirts and Certain Pants”. They originate in an LDC if they are sewn or otherwise assembled there. CBSA’s own memorandum gives this example: criterion C goes in Field 6.
- Criterion B: most other knitwear. Knit polos (6105), sweatshirts and hoodies (most of 6110) and the other headings in Part A1 originate in an LDC if they are cut, or knit to shape, and sewn or otherwise assembled there.
Under both letters, the fabric can come from anywhere, including China or India. Only the fabric that decides the tariff classification is considered, and its origin does not matter. One practical point: if a single invoice covers T-shirts and hoodies, Field 6 carries a different letter for each line. We check the HS subheading of every style before we fill it in, and tell you if a style falls outside these lists.
Getting there: shipping through India
Every sea shipment from Nepal crosses India, so the direct-shipment rule matters. Goods shipped through another country still qualify if, when an officer asks, the importer can provide documents showing the route and every point of shipment and transhipment, and customs documents showing the goods stayed under customs control there. Only unloading, reloading, storage and similar handling needed to move the goods is allowed along the way. We move goods under the Nepal–India transit arrangements and send you the transit papers and bill of lading with the B255, so the trail is complete before the container sails.
At the border: code 08
Your customs broker claims the rate by declaring tariff treatment code 08 for the LDCT on the commercial accounting declaration in the CARM Client Portal. CBSA does not collect the B255 with every entry; it must be presented on request. If it cannot be produced, the goods pay the MFN rate, 18% on a cotton tee, and a penalty can follow. If a shipment was entered without the LDCT claim, talk to your broker about a refund claim: CBSA’s refund memorandum sets a four-year window.
Keep the B255 with the entry for six years. That is the record-keeping period CBSA sets for certificates of origin, and the one most often forgotten when a buyer changes brokers.
How long the 0% lasts
The LDCT provisions of Canada’s Customs Tariff run to 31 December 2034. Nepal is scheduled to graduate from the UN list of least developed countries on 24 November 2026, and Canada’s stated policy is to give graduating countries three more years of full LDCT benefits after their status changes. That is policy intent rather than law, so we will confirm Nepal’s treatment as soon as Canada publishes it. Our graduation guide tracks each market.
What we send with every Canadian shipment
A completed and signed B255 with the right letter per style, the commercial invoice it refers to, the bill of lading and transit documents for the India leg, and the fibre-content data for your labels. Our Canada page has the duty table and paperwork list, and you can send us a style you currently import for a landed quote at 0% duty.
Frequently asked
Who fills in Form B255?
Which origin criterion goes in Field 6 for T-shirts made in Nepal?
What tariff treatment code does the broker declare?
How long must the importer keep Form B255?
About the author
Santosh Rijal runs Trishakti Apparel, the export knitwear factory his family built on three decades in Nepal’s fashion trade. He writes about sourcing, duty and production from the factory floor in Gaindakot.