Importing Apparel Into the UK: Duty, VAT and the DCTS After Brexit
Post-Brexit, the UK runs its own tariff schedule and its own preference scheme, which means EU guidance no longer transfers. For Bangladeshi apparel the headline is good — the Developing Countries Trading Scheme puts the rate at zero. The detail is where brands get caught: that zero is claimable only against a valid proof of origin, and not every supplier can issue one. We cannot, and this post explains what that means for your numbers.
Two numbers, and which one you get
Under the UK Global Tariff, apparel imported at the standard most-favoured-nation rate attracts duty of around 12%. Under the Developing Countries Trading Scheme, Bangladeshi-origin apparel qualifies for 0%.
Which number appears on your entry is decided by one thing: whether you can present a valid preferential proof of origin at clearance. The goods being genuinely Bangladeshi is necessary and not sufficient. The paperwork is what customs acts on.
This is the part most supplier marketing skips, and it is worth being precise about because the gap is roughly 12% of your goods value.
Why we cannot give you the zero
Preferential origin under the DCTS is claimed against a statement on origin made by an exporter registered in the REX system. We are not REX registered, so we cannot issue that statement, at any order size.
That means you should budget the standard rate — around 12% — on anything you buy from us for the UK market, unless your customs broker can establish preferential origin by another route. We would rather you plan on 12% and be pleasantly surprised than plan on zero and be invoiced.
We say this plainly because the alternative is worse for both of us. A brand that models 0% and clears at 12% has lost most of a launch margin on a shipment it already paid for, and the conversation that follows is not one any supplier relationship survives comfortably.
Import VAT, which is the bigger number
Duty gets the attention; VAT is usually the larger cash item. UK import VAT applies at the standard rate on the value of the goods plus freight, insurance and any duty — so it is charged on a base that already includes the duty you paid.
For a VAT-registered business this is a cash-flow cost rather than an absolute one: import VAT is recoverable on your return, and postponed VAT accounting lets you declare and recover it on the same return rather than paying at the border and waiting. Registering for postponed accounting is one of the highest-value administrative steps a first-time UK importer can take.
If you are not VAT registered, it is a real cost and belongs in your landed-cost model at full rate.
Ports, transit times and how we run UK accounts are on our UK manufacturing page.
What clearing a shipment involves
- An EORI number beginning GB — you cannot import commercially without one
- A customs declaration, filed by you or, more usually, a broker or freight forwarder
- Commercial invoice, packing list, bill of lading or airway bill, and certificate of origin — all prepared by us
- A decision on postponed VAT accounting before the first shipment, not after
- A commodity code for each product. Getting this wrong is the most common cause of a delayed or re-assessed entry
Budgeting a UK order honestly
Take a 500-piece heavyweight tee run at an indicative $11.25 CIF. Duty at 12% adds roughly $1.35 a piece, about $675 across the order. Import VAT then applies on goods plus freight plus that duty, recoverable if you are registered.
Model it that way from the start and a UK programme is entirely workable — Bangladesh remains the strongest cost base for cotton knitwear even at standard duty. Model it at zero and the same order arrives 12% more expensive than the spreadsheet that justified it.
Frequently asked questions
- Is clothing from Bangladesh duty-free into the UK?
- It qualifies for 0% under the Developing Countries Trading Scheme, but the preferential rate is only claimable against a valid proof of origin. We are not REX registered and cannot issue one, so budget the standard rate of around 12% on goods bought from us unless your broker can establish origin another way.
- What is the UK import duty on clothing?
- Around 12% at the standard UK Global Tariff rate for most apparel, or 0% under DCTS preference where a valid proof of origin is presented. Import VAT applies separately on goods plus freight plus duty.
- What is a REX number and why does it matter?
- REX is the registered exporter system. A registered exporter can make a statement on origin that lets the importer claim a preferential tariff. Without it the goods clear normally but at the standard rate. It is the single piece of paperwork that decides whether you pay 0% or 12%.
- Do I need an EORI number to import clothing into the UK?
- Yes — a GB EORI is required for commercial imports and takes a few days to obtain. Apply before your first shipment ships, not after it lands.
- Can I reclaim UK import VAT?
- If you are VAT registered, yes, on your VAT return. Postponed VAT accounting lets you declare and recover it on the same return rather than paying at the border and waiting for repayment, which is worth setting up before your first import.
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