How Much Duty Do You Pay on Clothing from Bangladesh? US, UK, EU, Canada and Australia in 2026

Duty on a Bangladesh-made garment is zero in four of its five main markets: the UK, the EU, Canada and Australia all admit least-developed-country origin duty-free. The United States is the exception, charging MFN plus a 10% Section 301 duty since 24 July 2026, about 26.5% on cotton knit tops. VAT or GST is separate. Verified 19 September 2026.

Why is Bangladesh duty-free in most markets?

Because the UN lists it as a least developed country, and the UK, the EU, Canada and Australia each run a preference scheme that removes tariffs on LDC-origin goods. The schemes have different names and different origin rules, but for cut-and-sew garments the practical test in all four is the same today: cutting and sewing the garment in Bangladesh confers origin, even where the fabric was imported. That is the work done on our own floor, so the certificate or statement of origin your broker needs is straightforward. The US runs no LDC scheme for apparel, which is why it is the odd one out.

What does each market charge?

What does that mean on a real order?

Take 500 cotton t-shirts at a US$6.00 customs value each, US$3,000 in total. Landing in the UK, the EU, Canada or Australia there is no duty line at all; the only border charge is VAT or GST, which is normally recoverable if you are registered. Landing in the US, duty is 26.5% of the customs value: US$1.59 per shirt, about US$795 on the order, and no VAT. The landed-cost calculator runs the same arithmetic for any quantity and price, market by market, with the sources beside the result.

What changed in the United States in 2026?

Three things, in order. On 20 February 2026 the Supreme Court held in Learning Resources, Inc. v. Trump that IEEPA does not authorise tariffs, and Executive Order 14389 ended the 19% reciprocal rate the same day, with refunds available through CBP. A 10% Section 122 surcharge then ran from 24 February to 24 July 2026 and expired. From 24 July 2026 USTR's Section 301 action applies an additional 10% to all goods of Bangladesh on top of MFN. The February 2026 trade agreement also promised a tariff-rate quota under which garments made with US cotton and textile inputs would enter free of the 10%; it would not remove MFN duty, and as of 19 September 2026 no quota notice has been published. Our US tariff guide follows that story in detail.

What happens when Bangladesh graduates from LDC status?

Graduation is scheduled for 24 November 2026. Bangladesh asked the UN in February 2026 for an extension; the Committee for Development Policy said one would be appropriate provided reforms continue, and in July 2026 ECOSOC referred the request to the General Assembly, which had not published a decision when we checked on 19 September 2026 (UN LDC portal). The 2029 date in press reports is the requested date, not a decided one.

The duty consequences are bounded in three markets. The EU keeps EBA for three years after graduation under Regulation (EU) 2026/1395. The UK keeps Bangladesh in the Comprehensive tier for three years, then moves it to Enhanced Preferences, where garments stay at 0% under the origin rule reformed on 1 January 2026. Canada keeps full LDCT benefits for three years, after which most apparel lines revert to MFN, typically 16 to 18%, unless the GPT+ tier under development covers them. Australia has published no transition rule we could find. The US position does not depend on LDC status at all. Our LDC graduation guide sets out each scenario.

How do you claim the zero rate?

With proof of origin, and the form depends on the market: a statement on origin for the UK and EU, a certificate of origin and direct shipment for Canada, and origin documentation showing the last process and factory-cost split for Australia. Ship DDP and the exporter's forwarder files it for you; ship FOB and your broker will ask you for it. Either way the documents come from the factory, which is one reason to contract the factory rather than an agent who cannot say where the goods were made. Everything we ship leaves with the commercial invoice, packing list and origin paperwork sent to you before the goods move.