Does imported fabric still qualify?
Under GACC Order No. 231 (as amended in 2024), goods made in a least developed country from imported materials qualify when they change four-digit tariff heading there, or when regional value content is at least 40%. Cutting and sewing knitted fabric (Chapter 60) into garments (Chapter 61) changes heading. Article 7 treats materials originating in China as originating in the beneficiary country, so Chinese-made fabric does not count against the garment. Simple operations such as ironing, labelling or repacking alone do not confer origin. GACC (source: Order No. 231, as amended by Order No. 273 (2024): rules of origin for goods from least developed countries (change of heading or 40% value content; Chinese materials count as originating; direct transport; certificate), opens in a new tab)
What you receive and use at import
- A certificate of origin in China’s form for least-developed-country preferences, issued in English by the body Nepal designates, within five working days after export and valid for one year; the importer claims the 0% rate on the Chinese customs declaration. Consignments with a customs value of RMB 6,000 or less need no certificate. We confirm the issuing body for each shipment. GACC (source: Order No. 231, as amended by Order No. 273 (2024): rules of origin for goods from least developed countries (change of heading or 40% value content; Chinese materials count as originating; direct transport; certificate), opens in a new tab) TEPC (source: Export and transit procedures: certificates of origin (TEPC, FNCCI, NCC, CNI), opens in a new tab)
- If goods travel through a third country such as India, they must stay under that country’s customs control, not enter its trade, receive no processing beyond loading and unloading, and stay no longer than six months; the importer may need proof from the transit country’s customs. GACC (source: Order No. 231, as amended by Order No. 273 (2024): rules of origin for goods from least developed countries (change of heading or 40% value content; Chinese materials count as originating; direct transport; certificate), opens in a new tab)
- Import VAT of 13% is charged on the customs value plus duty, whatever the origin; the customs value includes transport and insurance to the place of import. State Taxation Administration of China (source: VAT Law (in force 1 January 2026): import VAT on customs value plus duty, opens in a new tab) Government of China (source: Customs Tariff Law of the PRC (in force 1 December 2024): customs value includes transport and insurance to the place of import, opens in a new tab)