REX registered 0% duty into the EU, UK, Canada & Japan — see current status

Trishakti Apparel · Nepal

Rules of origin · 10 markets · free

Nepal knitwear 0% checker

Pick the garment and where its fabric and trims come from. See, market by market, whether it can enter at 0%, what paperwork proves it, and how long it lasts.

Cost per piece in US$, used only by the Korea, Australia and India tests. Example values: replace them with your own.
0% eligibility by market for a cotton t-shirt cut and sewn in Nepal
MarketResultFrom NepalStandard rateWhyPaperworkHow long
European Union (all 27 countries)Qualifies0%12%EU single transformation: cutting and sewing in Nepal qualifies, from fabric made anywhere.Statement on origin on the invoice, quoting the exporter’s REX number. No stamped certificate.At least to end-2029: EBA runs three years after graduation takes effect.
United KingdomQualifies0%12%UK DCTS: one significant process such as cutting and sewing qualifies, from fabric made anywhere.Origin declaration on the invoice (DCTS wording). No REX needed.About November 2029, then Enhanced Preferences, also 0% on these lines.
CanadaQualifies0%18%Canada: T-shirts need only sewing or assembly in the LDC (criterion C); fabric origin doesn’t matter.CBSA Form B255 signed by the exporter, criterion C. Broker declares tariff treatment 08.About November 2029 (Canada’s three-year transition); 18% expected after.
JapanQualifies0%7.4%Japan: knitted apparel “manufactured from fabrics” qualifies; the fabric need not be Nepali.GSP Certificate of Origin Form A for each consignment (small consignments exempt).Up to three years after graduation; exact end date to be confirmed.
South KoreaQualifies0%13%Imported materials are 56.3% of FOB, within Korea’s 60% limit (Korean materials don’t count).Certificate of origin in the form of Korea’s decree; not needed at KRW 150,000 or less. Direct shipment.Goods declared for import up to 23 November 2029.
AustraliaQualifies0%5%Allowable cost is 58.3% of factory cost, meeting Australia’s 50% rule.Manufacturer’s declaration on the invoice, plus cost records for the 50% test.After 24 November 2026: to be confirmed. General rate 5%.
ChinaQualifies0%6%China: cut-and-sew changes tariff heading; Chinese fabric counts as originating.LDC certificate of origin in China’s form within five working days of export; not needed at RMB 6,000 or less.While Nepal is an LDC; no Chinese transition announced.
IndiaQualifies0%22%Materials from outside Nepal and India are 56.3% of FOB, within the treaty’s 70% limit.Treaty certificate of origin per consignment (or a SAFTA certificate).Treaty of Trade does not depend on LDC status.
United StatesNo preference16.5%16.5%No preference for Nepal: the normal (MFN) rate applies. Nepal is not on the Section 301 list as of September 2026.Country-of-origin marking; mill and yarn traceability for UFLPA questions.No preference to lose.
United Arab EmiratesNo preference5%5%No preference exists for Nepal: the standard 5% GCC duty applies.Certificate of origin with the customs declaration.No preference to lose.

The EU row covers every member state, including Germany, France, Italy and the Netherlands. Not customs or legal advice.

Questions

How the checker decides.

What does this checker assume?
That the garment is cut and sewn (or knitted to shape and sewn) in Nepal, and shipped directly to the market with transit documents. It applies each market’s rule of origin for least-developed-country goods to the garment and costs you enter.
Why does Korea, Australia or India say “fails test”?
Those three use value tests. Korea allows imported materials up to 60% of the FOB price (Korean materials not counted). Australia needs at least 50% of factory cost to be allowable, with materials from non-LDC developing countries such as China, India or Vietnam counting only up to 25%. India’s treaty allows materials from outside Nepal and India up to 70% of FOB. Cheap basics with imported fabric can fail; a higher FOB, local fabric or Korean fabric (for Korea) can change the result.
Why is the US “no preference”?
The Nepal Trade Preference Program expired on 31 December 2025 and US GSP remains lapsed, so Nepali knitwear pays the normal MFN rate, for example 16.5% on cotton T-shirts. As of September 2026 Nepal is not one of the 60 economies with extra Section 301 duties.
What happens after Nepal’s LDC graduation?
Nepal is scheduled to graduate on 24 November 2026 and has asked for a deferral. The “How long” column shows each market’s transition as published; where no transition is published, it says “to be confirmed”.
Is this customs advice?
No. It restates each market’s published rules, checked on 25 September 2026. Confirm your HS code and origin with a licensed customs broker before you order.

Sources & last verified

Page facts checked

We link every trade claim to the body that publishes it — official sources first. Rules change; if you spot something out of date, tell us.

  1. 01 Preferential Rules of Origin – guide to claiming preferential rates under non-FTA arrangements (LDC rule, s153NA; 25% cap on non-LDC developing-country materials) Australian Border Force · official · checked 24 Sept 2026
  2. 02 Developing countries or least developed countries (Australian System of Tariff Preferences) Australian Border Force · official · checked 24 Sept 2026
  3. 03 Working tariff – Schedule 3, Section XI, Chapter 61 Australian Border Force · official · checked 24 Sept 2026
  4. 04 Customs Notice 24-41: Canada’s unilateral tariff preference programs for imports from developing countries Canada Border Services Agency · official · checked 24 Sept 2026
  5. 05 Memorandum D11-4-4: Rules of origin respecting the GPT and LDCT (Form B255 for textiles and apparel) Canada Border Services Agency · official · checked 24 Sept 2026
  6. 06 Customs Tariff 2026 – Chapter 61 (MFN 18%; LDCT Free) Canada Border Services Agency · official · checked 24 Sept 2026
  7. 07 CAROTAR 2020: importers claiming a preferential rate must hold origin information (Form I) and keep records for five years CBIC – Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 · official · checked 25 Sept 2026
  8. 08 Effective rates of customs duty from 1 Nov 2025, superseding 50/2017-Customs (no Chapter 61 entry) CBIC – Notification 45/2025-Customs (24 Oct 2025) · official · checked 25 Sept 2026
  9. 09 IGST from 22 Sep 2025: Chapter 61 garments 5% up to Rs 2,500 sale value per piece, 18% above CBIC – Notification 9/2025-Integrated Tax (Rate) · official · checked 25 Sept 2026
  10. 10 Customs Tariff of India – Chapter 61: 6109 10 00 "20% or Rs. 45 per piece, whichever is higher"; 6105 10 20% or Rs 83; 6110 20 00 20% or Rs 85 Central Board of Indirect Taxes and Customs (CBIC), India · official · checked 25 Sept 2026
  11. 11 Canada’s unilateral tariff preference programs for imports from developing countries (LDCT renewed to 2034; three-year post-graduation transition) Department of Finance Canada · official · checked 24 Sept 2026
  12. 12 Services Guide 2025 (customs declaration: invoice, packing list, certificate of origin; business registration with trade licence) Dubai Customs · official · checked 25 Sept 2026
  13. 13 FAQ: customs duty is 5% of the CIF value (GCC Common Customs Law) Dubai Customs · official · checked 25 Sept 2026
  14. 14 Commission Delegated Regulation (EU) 2015/2446 – Annex 22-03 (GSP product-specific rules, separate LDC column) EUR-Lex (Official Journal of the EU) · official · checked 24 Sept 2026
  15. 15 Commission Regulation (EU) No 1063/2010 – GSP rules of origin reform applying from 1 January 2011 (single transformation for LDC garments) EUR-Lex (Official Journal of the EU) · official · checked 24 Sept 2026
  16. 16 Commission Implementing Regulation (EU) 2015/2447 – Annex 22-07 (statement on origin) EUR-Lex (Official Journal of the EU) · official · checked 24 Sept 2026
  17. 17 The EU’s renewed GSP scheme: key updates for 2027 (Regulation (EU) 2026/1395; EBA for 2026 graduates at least until end-2029) European Commission – Access2Markets · official · checked 24 Sept 2026
  18. 18 A guide for users on GSP rules of origin (REX, statements on origin, EUR 6,000 threshold) European Commission – DG TAXUD · official · checked 24 Sept 2026
  19. 19 Generalised System of Preferences (GSP) – preferential rules of origin European Commission – DG TAXUD · official · checked 24 Sept 2026
  20. 20 Registered Exporter (REX) system European Commission – DG TAXUD · official · checked 24 Sept 2026
  21. 21 REX – Registered Exporter System: REX number validation European Commission – DG TAXUD · official · checked 24 Sept 2026
  22. 22 TARIC measures for CN 6109 10 00 (cotton knitted T-shirts), origin Nepal European Commission – TARIC · official · checked 24 Sept 2026
  23. 23 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) General Administration of Customs of China (GACC) · official · checked 25 Sept 2026
  24. 24 Online tariff query, 2026: 6109100000, 6105100010/90 and 6110200010/90 — MFN 6%, import VAT 13% General Administration of Customs of China (GACC) · official · checked 25 Sept 2026
  25. 25 Update: improved rules of origin under the DCTS are now in effect (1 January 2026) GOV.UK – Department for Business and Trade · official · checked 24 Sept 2026
  26. 26 Preference tier graduation: Bhutan (three-year DCTS transition after UN LDC graduation) GOV.UK – Department for Business and Trade · official · checked 24 Sept 2026
  27. 27 How to claim preferences under the Developing Countries Trading Scheme (DCTS) – Form A or origin declaration GOV.UK – HMRC · official · checked 24 Sept 2026
  28. 28 Using an origin declaration for the Developing Countries Trading Scheme GOV.UK – HMRC · official · checked 24 Sept 2026
  29. 29 Customs Tariff Law of the PRC (in force 1 December 2024): customs value includes transport and insurance to the place of import Government of China (gov.cn) · official · checked 25 Sept 2026
  30. 30 SAFTA rules of origin: change of heading and non-originating materials ≤ 60% of FOB, 70% for LDCs; regional cumulation Government of India – Notification 75/2006-Customs (N.T.) (third-party copy) · official · checked 25 Sept 2026
  31. 31 SAFTA: whole basic customs duty exempted for goods from Bangladesh, Bhutan, Maldives, Nepal and Afghanistan, except alcohol and tobacco (about 25 lines) Government of India – Notification 99/2011-Customs (gazette text, third-party copy) · official · checked 25 Sept 2026
  32. 32 Simplification of preferential rules of origin under GSP for knitted apparel (HS Chapter 61), from 1 April 2015 Japan Customs · official · checked 24 Sept 2026
  33. 33 Outline of Japan’s GSP (FAQ 1501) – duty-free, quota-free treatment for LDCs Japan Customs · official · checked 24 Sept 2026
  34. 34 Japan’s Tariff Schedule as of 8 August 2026 – Chapter 61 Japan Customs · official · checked 24 Sept 2026
  35. 35 General Preferential Tariff, GPT Plus and Least Developed Country Tariff Rules of Origin Regulations (SOR/2023-210) Justice Laws Website, Government of Canada · official · checked 24 Sept 2026
  36. 36 Regulations on Providing Preferential Tariff Treatment to Least Developed Countries — English translation (2021 version; Article 5 rules of origin unchanged since) Korea Legislation Research Institute (official English translation) · official · checked 27 Sept 2026
  37. 37 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) Korea Ministry of Government Legislation – National Law Information Center · official · checked 27 Sept 2026
  38. 38 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) Korea Ministry of Government Legislation – National Law Information Center · official · checked 27 Sept 2026
  39. 39 Presidential Decree No. 35365 (28 Feb 2025, in force 1 Apr 2025): LDC preferences continue for three years after graduation; Nepal, Laos and Bangladesh date moved from 23 Nov 2026 to 23 Nov 2029 (amendment texts) Korea Ministry of Government Legislation – National Law Information Center · official · checked 27 Sept 2026
  40. 40 LDC preferential tariff regulations, Appendix 1 (amended 28 Feb 2025): eligible countries; Note 1 — preferences for Nepal, Laos and Bangladesh apply to goods declared for import by 23 November 2029 Korea Ministry of Government Legislation – National Law Information Center · official · checked 27 Sept 2026
  41. 41 Value-Added Tax Act (부가가치세법), Art. 29(2) and 30: import VAT of 10% on customs value plus duty (and any excise taxes) Korea Ministry of Government Legislation – National Law Information Center · official · checked 27 Sept 2026
  42. 42 LDC preferential tariff regulations, Appendix 2 (amended 31 Dec 2024): goods and preferential rates — every Chapter 61 and 62 line at 0%, including 6109.10, 6105.10 and 6110.20 (spreadsheet) Korea Ministry of Government Legislation – National Law Information Center · official · checked 27 Sept 2026
  43. 43 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 Korea Ministry of Government Legislation – National Law Information Center · official · checked 27 Sept 2026
  44. 44 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 Korea Ministry of Government Legislation – National Law Information Center · official · checked 27 Sept 2026
  45. 45 2026 tariff adjustment plan explainer: zero tariffs on 100% of tariff lines continue for 43 least developed countries Ministry of Finance, China · official · checked 25 Sept 2026
  46. 46 Union Budget 2026-27, customs changes: "Chapter 57-65: No Change"; Social Welfare Surcharge defined Ministry of Finance, India – Tax Research Unit · official · checked 25 Sept 2026
  47. 47 Trade Policy Review of Japan 2026 – opening statement by Japan (GSP: LDC treatment extended to up to three years after graduation) Ministry of Foreign Affairs of Japan · official · checked 24 Sept 2026
  48. 48 Nepal Trade Preference Program (NTPP) Office of the U.S. Trade Representative · official · checked 24 Sept 2026
  49. 49 Notice of actions in Section 301 investigations of 60 economies related to forced labour import prohibitions (effective 24 July 2026) Office of the U.S. Trade Representative · official · checked 24 Sept 2026
  50. 50 SAFTA Agreement (2004): LDC members are those designated as least developed by the United Nations (Art. 1) SAARC – Agreement on South Asian Free Trade Area (World Bank WITS copy) · official · checked 25 Sept 2026
  51. 51 VAT Law (in force 1 January 2026): import VAT on customs value plus duty State Taxation Administration of China · official · checked 25 Sept 2026
  52. 52 Nepal–India Treaty of Trade: whole basic customs duty exempted for qualifying Nepali manufactures with a Nepali certificate of origin Textiles Committee, Government of India – Notification 94/2010-Customs · official · checked 25 Sept 2026
  53. 53 Actions by the United States in the Section 301 investigations of 60 economies (July 2026) The White House · official · checked 24 Sept 2026
  54. 54 EU REX registration for Nepali exporters Trade and Export Promotion Centre (TEPC), Government of Nepal · official · checked 24 Sept 2026
  55. 55 Extension of transition period for EU REX system in Nepal (Form A until 30 June 2018) Trade and Export Promotion Centre (TEPC), Government of Nepal · official · checked 24 Sept 2026
  56. 56 Treaty of Trade between Nepal and India, with Protocol (Article V rules of origin) Trade and Export Promotion Centre (TEPC), Government of Nepal · official · checked 24 Sept 2026
  57. 57 Trade agreements – Treaty of Trade with the Republic of India Trade and Export Promotion Centre (TEPC), Government of Nepal · official · checked 24 Sept 2026
  58. 58 Export and transit procedures: certificates of origin (TEPC, FNCCI, NCC, CNI) Trade and Export Promotion Centre (TEPC), Nepal · official · checked 25 Sept 2026
  59. 59 Uyghur Forced Labor Prevention Act (UFLPA) U.S. Customs and Border Protection · official · checked 24 Sept 2026
  60. 60 Harmonized Tariff Schedule – 6109.10.00 (16.5%), 6105.10.00 (19.7%), 6110.20.20 (16.5%) U.S. International Trade Commission · official · checked 24 Sept 2026
  61. 61 Federal Decree-Law No. 8 of 2017 on VAT (consolidated): 5% on imports; value of import = customs value incl. freight, insurance and customs duty UAE Federal Tax Authority · official · checked 25 Sept 2026
  62. 62 Final agreement text, incl. UAE tariff schedule (Annex 2B): 6105.10, 6109.10, 6110.20 base rate 5%, category A (0% from day 1) UAE Ministry of Economy – UAE–India CEPA · official · checked 25 Sept 2026
  63. 63 FAQ: electronic attestation of import invoices of AED 10,000 and above (since 1 February 2023; AED 150; 14 days from the bill of entry) UAE Ministry of Foreign Affairs · official · checked 25 Sept 2026
  64. 64 Comprehensive Economic Partnership Agreements (partner list; Nepal and Bangladesh not listed) UAE Ministry of Foreign Trade · official · checked 25 Sept 2026
  65. 65 GCC free trade agreements (China listed as under negotiation) UAE Ministry of Foreign Trade · official · checked 25 Sept 2026
  66. 66 Tariff schedule of the UAE: 6105.10, 6109.10, 6110.20 base rate 5%, category E(0), duty-free on entry into force UAE–Vietnam CEPA, Appendix 2A-A (published by WTO Center Vietnam) · official · checked 25 Sept 2026
  67. 67 Commodity 6109100010 – T-shirts of cotton (third-country duty and DCTS rates) UK Integrated Online Tariff · official · checked 24 Sept 2026
  68. 68 Trade preferences for Asia-Pacific LDCs and developing economies: 2026 updates (22 May 2026) UN ESCAP · official · checked 24 Sept 2026
  69. 69 Nepal – graduation status (scheduled 24 November 2026; 2026 extension request, CDP and ECOSOC) United Nations – LDC Portal · official · checked 24 Sept 2026
  70. 70 List of preferential trade arrangements (no UAE or other GCC scheme for developing or least developed countries) World Trade Organization – PTA database · official · checked 25 Sept 2026
  71. 71 SAFTA concessions for non-LDC members: 6105 10, 6109 10 and 6110 20 on the negative (sensitive) list CUSTADA – consolidation of Notification 68/2012-Customs · checked 25 Sept 2026
  72. 72 SAPTA/SAFTA certificate of origin, issued through FNCCI member chambers Federation of Nepalese Chambers of Commerce and Industry (FNCCI) · checked 25 Sept 2026
  73. 73 Nepal will seek delayed LDC graduation citing economic constraints (16 May 2026) The Kathmandu Post · checked 24 Sept 2026
  74. 74 Nepal, India agree to review treaty amid widening trade deficit (23 Sep 2026) The Kathmandu Post · checked 24 Sept 2026
  75. 75 US trade preference for Nepal expires, but exports unlikely to be hit hard, say experts (5 Jan 2026) The Kathmandu Post · checked 24 Sept 2026

Namaste — let’s talk

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