Does imported fabric still qualify?
Korea’s rule for least-developed-country goods (Article 5 of its Regulations on Providing Preferential Tariff Treatment to Least Developed Countries) is a value test, not a change of tariff heading. A garment made in Nepal from imported materials qualifies only when those materials cost no more than 60% of the garment’s FOB price. Imported materials are valued at their price on arrival in Nepal, including freight and insurance. Materials produced in Korea are left out of the count, so Korean fabric or trims make a style easier to qualify. On low-priced basics, where fabric is most of the cost, imported fabric can pass 60%, so we work out the share for each style before you order. Korea law.go.kr (source: Regulations on Providing Preferential Tariff Treatment to Least Developed Countries (최빈개발도상국에 대한 특혜관세 공여 규정), Presidential Decree No. 35947, in force 2 January 2026: Art. 2 (three years after graduation), Art. 5 (rules of origin: non-originating materials ≤ 60% of FOB price, Korean materials excluded; certificate of origin), opens in a new tab) KLRI (source: Regulations on Providing Preferential Tariff Treatment to Least Developed Countries — English translation (2021 version; Article 5 rules of origin unchanged since), opens in a new tab)
What you receive and use at import
- A certificate of origin in the form attached to Korea’s decree, issued by the Government of Nepal or a body it designates, which the importer presents to claim the 0% rate. Korea does not ask for a certificate when the customs value is KRW 150,000 or less. We confirm the issuing body and arrange the certificate for each shipment. Korea law.go.kr (source: Regulations on Providing Preferential Tariff Treatment to Least Developed Countries (최빈개발도상국에 대한 특혜관세 공여 규정), Presidential Decree No. 35947, in force 2 January 2026: Art. 2 (three years after graduation), Art. 5 (rules of origin: non-originating materials ≤ 60% of FOB price, Korean materials excluded; certificate of origin), opens in a new tab) Korea law.go.kr (source: Enforcement Decree of the Customs Act (관세법 시행령), Art. 236: certificate of origin; not required for goods with a customs value of KRW 150,000 or less, postal items and some other cases, opens in a new tab) +1
- Goods must travel to Korea directly. Passing through India or a transhipment port is allowed for geographic or transport reasons only, under customs control there, with no work beyond unloading and reloading. We ship on a through bill of lading or air waybill to keep this clear. Korea law.go.kr (source: Enforcement Rule of the Customs Act (관세법 시행규칙), Art. 76: direct transport — transit through another country only for geographic or transport reasons, under customs control, with no work beyond unloading and reloading, opens in a new tab)
- Import VAT of 10% is charged on the customs value plus duty, whatever the origin; the customs value includes freight and insurance to the Korean port. Korea law.go.kr (source: Value-Added Tax Act (부가가치세법), Art. 29(2) and 30: import VAT of 10% on customs value plus duty (and any excise taxes), opens in a new tab) Korea law.go.kr (source: Customs Act (관세법, Act No. 21858, in force 11 Aug 2026): Art. 50 and its tariff schedule (basic rate 13% on 6105.10, 6109.10 and 6110.20); Art. 30 (customs value includes freight and insurance to the Korean port); Art. 76(3) (LDC preferences continue for a set period after graduation), opens in a new tab)