Sourcing knitwear from Nepal: a guide for Italian buyers

Italy is not a new market for Nepal. Clothing (HS chapters 61 and 62) was the largest thing Italy bought from Nepal in FY 2082/83 (mid-July 2025 to mid-July 2026): Rs 665 million of Rs 1.60 billion, or 41% of the total, according to Nepal’s Department of Customs. Knitwear (HS 61) alone was 29%, ahead of carpets, and Nepal’s knitwear exports to Italy grew 36% on the year before, measured in rupees. Nepal and Italy have had diplomatic relations since 31 August 1959.

This guide covers what an Italian importer needs to know to buy knit basics from us: the duty, the paperwork, and the few things that are specifically Italian. For the short version, see our page for Italian buyers.

The duty position: 0% under Everything But Arms

Italy applies the EU’s common customs tariff, so the rules are the same as in Germany, France or the Netherlands. The standard EU duty on cotton knit T-shirts, polos and sweatshirts is 12%. From Nepal it is 0%, under Everything But Arms (EBA), the EU’s scheme for least-developed countries.

Two conditions apply:

• The garment must meet the rules of origin. For least-developed countries the EU uses a single-transformation rule for knitted apparel: a garment cut and sewn in Nepal is Nepali, even when the fabric is imported. That matters, because most knit fabric used in Nepal is imported.
• The shipment needs proof of origin. That is a statement on origin written on our commercial invoice, quoting our REX (Registered Exporter) number. You can check the number yourself on the European Commission’s REX validation page before you ship. How the REX statement works.

Nepal is scheduled to leave the UN least-developed-country category on 24 November 2026, and has asked for a deferral. The EU keeps EBA for three years after graduation takes effect, so the 0% rate holds at least until the end of 2029. What LDC graduation means for importers.

The paperwork, shipment by shipment

The documents are the same for any EU port:

1. Commercial invoice with our statement on origin in the wording the EU prescribes. The wording, explained.
2. Packing list, carton by carton.
3. Bill of lading (sea) or air waybill (air).

Your customs broker (spedizioniere doganale) files the import declaration and claims the preference with the statement on origin. There is no Form A: the EU stopped accepting it for Nepali goods when Nepal moved to REX.

What is Italian

Import VAT at 22%

Clothing is taxed at Italy’s standard VAT rate of 22%. Import VAT is charged on the customs value plus any duty, and from Nepal the duty is 0%. How and when your business recovers the VAT depends on your position, so settle it with your commercialista before the first shipment.

Fibre names in Italian

EU Regulation 1007/2011 requires the fibre composition in the official language of the country where the garment is sold to consumers. In Italy the fibre names must be in Italian and written in full, such as “cotone” for cotton, and breaches are penalised under Legislative Decree 190/2017. Because we are outside the EU, the importer is the one who must make sure the label is there and correct. We sew in main labels, care labels and composition labels to your artwork, in Italian or in several languages if you sell across Europe.

Textile EPR: coming, not yet in force

Italy is setting up extended producer responsibility (EPR) for textiles, as the revised EU Waste Framework Directive, Directive (EU) 2025/1892, requires of every member state. The environment ministry consulted on a draft decree in 2025, and the Conferenza Unificata gave it a favourable opinion on 23 July 2026. It still has approval steps before publication, and it was not yet in force when we checked in September 2026.

Under the draft, the producer is whoever first places the textiles on the Italian market, which for a direct import is usually you. When the scheme starts you will report what you place on the market; we already give buyers the fibre composition and garment weight for each style.

Getting the goods to Italy

We ship FOB Kolkata by sea or FCA Kathmandu by air, and your forwarder books the main leg.

• Sea: trucked from our factory in Gaindakot to Kolkata/Haldia or Visakhapatnam, then by container to Genoa or La Spezia for the north-west and centre, or Trieste for the north-east. Allow roughly 6–8 weeks from ex-factory, depending on carrier and transhipment.
• Air: via Kathmandu to Milan, typically about a week.

Transit times are indicative. Freight and lead times from Nepal, in detail.

Where the fabric comes from

About 90% of the knitted fabric Nepal imports comes from China, by value (89.8% in FY 2082/83, Department of Customs), and most of the rest from India. For EU duty that makes no difference, as the single-transformation rule shows. For your own sourcing policy it may. You choose the fabric: our regular mills, OEKO-TEX-certified fabric, or a mill you nominate. We confirm the mill and its country before you order and keep the records for each fabric lot.

Starting small

Our export minimum is 1,000 pieces per style per colour. Samples take 7–14 days after we review your tech pack, and bulk 40–50 days after sample approval. That is small enough for an Italian label to test one or two styles before committing.

Before you place an order, you can feel the fabrics with a sample kit, or send us your tech pack through the contact page for a price for your exact spec.