Importing Apparel: Duties, VAT and Logistics for the UK, USA and EU

The unit price on a quote is only the beginning of what an imported garment really costs you. Duties, import VAT, customs handling and freight all stack on top, and the difference between a sloppy estimate and a precise landed cost can decide whether an order is profitable. This guide demystifies the moving parts across the UK, USA and EU.

Landed cost is the number that matters

Landed cost is the total to get goods from the factory to your door — product, freight, insurance, duty, import taxes and handling. Always build your margins on landed cost, never on the ex-works price, because two quotes with identical unit prices can land at very different totals once shipping and import charges are added.

Incoterms decide who pays for what

Incoterms are the standardised shipping terms that define exactly where the supplier’s responsibility ends and yours begins. Getting these right prevents nasty surprises about who pays freight, insurance and import charges.

• EXW (Ex Works): you handle everything from the factory door — cheapest headline, most work.
• FOB (Free On Board): supplier gets goods onto the vessel; you handle main freight and import.
• CIF: supplier covers cost, insurance and freight to your port; you handle import clearance.
• DDP (Delivered Duty Paid): supplier delivers to your door with duties paid — simplest for you.

How duties are calculated

Import duty on apparel is based on the product’s classification code, its declared value and its country of origin. Clothing typically carries meaningful duty rates, and the exact percentage depends on the garment type and the trade arrangement between the origin and destination countries. The classification code — an HS or commodity code — is the key that determines the rate, so accuracy here directly affects your bill.

Why the commodity code matters

A misclassified garment can mean you overpay duty or face penalties for underpaying. It is worth confirming the correct code for each product type with your customs broker or the relevant tariff lookup so your declarations are accurate and your costs predictable.

Import VAT and sales tax differ by region

Taxes are where the UK, USA and EU diverge most, and treating them as the same is a common, costly error.

1. UK: import VAT is charged on the value of goods plus duty and freight; VAT-registered businesses can usually reclaim it, so it is often a cash-flow item rather than a final cost.
2. EU: import VAT applies at the member state’s rate on entry, with reclaim available to VAT-registered importers, but rules and rates vary by country.
3. USA: there is no federal VAT; instead, duties apply on import, and sales tax is handled domestically at the point of sale, varying by state.

The paperwork that keeps shipments moving

Customs delays are usually documentation problems, not inspection problems. Clean, consistent paperwork is the single biggest factor in a smooth clearance.

• Commercial invoice with accurate descriptions, values and origin.
• Packing list matching the invoice exactly — quantities, weights, cartons.
• Correct commodity codes for each product type.
• Any origin or preference certificates that reduce duty under a trade agreement.
• Your importer details and tax registration where required.

Customs rarely punishes honesty — it punishes inconsistency. When your invoice, packing list and codes all agree, clearance is usually routine.

Air versus sea, and when each makes sense

Freight mode is a balance of speed and cost. Air is fast and predictable but expensive per kilogram, suiting smaller, urgent or high-value orders. Sea is far cheaper per unit but slower and requires longer planning, suiting large, non-urgent runs. For many wholesale buyers, a tracked courier or consolidated service offers a practical middle ground on moderate quantities.

Reducing surprises before you order

1. Ask for a delivered or DDP quote so duties and freight are included upfront.
2. Confirm the commodity code and likely duty rate for your destination.
3. Check whether you can reclaim import VAT in your region.
4. Make sure paperwork descriptions and values are accurate and consistent.
5. Build a realistic buffer for customs into your lead-time plan.

Make landed cost part of the conversation

The best time to deal with import costs is before you commit, not when the carrier emails an unexpected bill. A supplier who can quote on delivered terms and prepare correct documentation removes most of the friction and lets you budget with confidence.

Velocity Wear ships tracked to the UK, USA, Europe and worldwide and prepares clean export documentation so your goods clear smoothly, from a 20-piece minimum. Tell us your destination and we will help you understand the delivered picture — request a free quote and plan your landed cost properly from day one.