EU GSP Is Gone for Indian Textiles: What 12% Duty Means for Your Price

Short answer: Indian towels and bed linen entering the EU pay the full 12 percent tariff. India's GSP preference on textiles is withdrawn for 2026 to 2028. The India-EU free trade agreement was concluded on 27 January 2026 but is not yet in force. Budget at 12 percent until it is.

What changed

For years, Indian textiles entered the EU at a reduced rate under the EU's preference scheme for developing countries. That preference has been withdrawn for Indian textiles for the 2026 to 2028 period. Older articles, including some price lists, still quote the reduced rate. They are out of date.

What it costs per piece

Duty is charged on the value of the goods plus freight and insurance to the EU border.

That is about 18 percent on top of the FOB price. On a 2,000-piece order it comes to roughly $900. Import VAT is separate and normally recoverable.

How India compares with other origins in the EU

We would rather you hear this from us. For a standard white hotel towel bought by the container on price alone, an EU buyer has a real duty reason to look at Pakistan or Türkiye today.

Why EU buyers still order from India

• Range on one order. Towels, sheets and robes together, which specialist towel origins often can't do.
• Small runs. Trial runs from 500 pieces, and bed linen and white robes from 50 pieces per size.
• Cotton grown at home, so yarn supply is not exposed to imports.
• The FTA. A supplier relationship built now carries on when the duty falls.

Planning around it

• Price at 12 percent. Treat any FTA saving as an upside, not a budget line.
• Ask your broker about duty relief schemes if you re-export, such as inward processing or customs warehousing.
• Cut the freight, since you can't cut the duty. Duty is charged on freight too, so a fuller container lowers both.
• Watch the FTA timetable. Entry into force needs ratification on both sides. Staging of tariff cuts will be set out in the final schedule.

Elsewhere in Europe

The UK is a different story: 0 percent under the India-UK CETA since 15 July 2026. Switzerland and Norway already apply little or no duty to these lines.

Check your own line

Our page on EU import duty for Indian textiles is kept current, and the import duty and FTA calculator works out duty and VAT by member state. For a price that shows FOB and CIF, ask us for a quote.