There is no general textile quota on Indian goods in the US, EU or UK, because the global quota system for textiles and clothing ended on 1 January 2005. What can still apply are anti-dumping duties, countervailing duties and safeguards on named products, and these are narrow and change over time.
So the question to ask is not whether Indian textiles are restricted, but whether your exact yarn, fabric or garment appears in a trade remedy measure. This article shows how to find out.
Are there textile quotas on India today?
The old quota system under the Multi-Fibre Arrangement was phased out under the WTO Agreement on Textiles and Clothing. Since then, quantity limits on clothing and fabric have not been a normal feature of trade with India.
Be careful with the word quota. Some agreements use tariff-rate quotas, where a set volume enters at a lower duty. That is a duty benefit, not a ban. Also, some importing countries still use licensing or monitoring for particular items, so confirm with your broker.
When do anti-dumping duties apply to yarn and fabric?
Anti-dumping duty is imposed after an investigation finds that a product was sold into the market at less than its normal value and caused injury to local producers. The duty is specific to a product description, a country and sometimes named exporters.
That means a duty on one type of synthetic yarn or fabric from one country says nothing about cotton yarn or garments from India. Equally, a measure can cover a product you assumed was safe if its description is broad. Read the product definition and the tariff codes in the measure itself.
How do you check for current measures?
Measures are published by the authority in your market, and they are reviewed and renewed on a schedule, so any list in an article will date quickly.
- In the EU, check the Commission's trade defence pages and the TARIC database for your code.
- In the UK, check the Trade Remedies Authority register and the UK Global Tariff lookup.
- In the US, check the Department of Commerce and US International Trade Commission records, and your broker's entry data.
- Ask your customs broker to confirm that no measure applies to your code and origin on the date of import.
Which Indian measures affect your supply chain?
India also applies its own trade remedies and import rules to inputs such as fibres and yarns. These can change what Indian mills pay for raw material, and so what they can offer you. Cotton import duty changes are one example, covered in how cotton prices feed into fabric and garment costs.
The structure of duties in each market is set out in how import duty on Indian textiles is set in the US, UK and EU.
What should you ask the supplier?
Ask the mill or factory for the exact tariff code and fibre composition of your goods, and for the country in which each production stage took place. That lets your broker check the measure against the real product.
Also ask whether the supplier has been named in any past investigation. Measures sometimes set separate rates for named exporters, and a supplier that was investigated may carry a different duty from the general rate. This is a reason to confirm the manufacturer rather than a trader, as discussed in how to tell a textile trader from a mill.
Next step
We confirm the code, origin and documents for each product before an order is placed so that you meet any measure with open eyes. To review your product, book a free sourcing review.