In this article
Short answer: the India-UK Comprehensive Economic and Trade Agreement has been in force since 15 July 2026. Indian towels and bed linen that meet its origin rules can enter the UK at 0 percent duty. Without the proof of origin, UK customs charges the standard rate: about 8 percent on towels and 12 percent on bed linen. Import VAT at 20 percent applies either way.
A worked order
2,000 bath towels, 550 GSM, at $2.50 FOB Cochin. Freight is our planning rate, so use your forwarder's quote.
| Without origin proof | With origin proof | |
|---|---|---|
| Goods, FOB | $5,000 | $5,000 |
| Freight and insurance | $2,700 | $2,700 |
| Customs value | $7,700 | $7,700 |
| Duty | 8 percent = $616 | 0 percent = $0 |
| Clearing | $280 | $280 |
| Landed before VAT | $8,596 | $7,980 |
| Per towel | $4.30 | $3.99 |
On bed linen at 12 percent, the gap is larger. On a $20,000 shipment with $3,000 of freight, duty would be $2,760.
What changes on the paperwork
- The commercial invoice carries the goods description and tariff code your broker will declare.
- The proof of origin required by the agreement accompanies the shipment. Your customs broker will tell you the exact form the agreement currently requires, and we provide it.
- The import declaration claims the preferential rate, quoting that proof.
Nothing changes in how the goods are made, packed or shipped.
What does not change
- Import VAT at 20 percent, which VAT-registered businesses normally recover.
- UK labelling rules for fibre content.
- Product safety and chemical rules.
- Transit: 21 to 26 days by sea from Cochin.
Three ways importers lose the zero rate
- Not asking for the origin proof before the goods ship.
- A mismatch between the invoice, the origin proof and the bill of lading.
- Goods that don't meet the origin rule. Towels and sheets made in India from Indian cotton are the simple case. Goods made from imported fabric may not qualify.
More in the document that decides whether you pay duty.
What to put in your purchase order
*"Supplier to provide proof of preferential origin under the India-UK CETA for this shipment. Tariff code to be agreed with the buyer's customs broker before dispatch."*
How India now compares for a UK buyer
| Origin | UK duty on terry towels |
|---|---|
| India | 0 percent under CETA |
| Pakistan | 0 percent under the UK's developing-country scheme |
| Bangladesh | 0 percent under the UK's developing-country scheme |
| Türkiye | 0 percent under the UK-Türkiye agreement |
| China | Standard rate |
So CETA does not make India cheaper than every rival. It removes a disadvantage. The choice between origins now rests on product, order size and reliability.
If you paid duty after 15 July 2026
Ask your customs broker whether a claim for repayment is possible for shipments that qualified but were entered at the standard rate. Time limits apply.
Check your own line
Our pages on India-UK CETA textile duty and UK towel import duty are kept current, and the duty calculator works your landed cost with VAT. For an FOB and CIF quote, send us your spec.
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Written by
Dr Abin Babu
Founder & Chairman, Anabyn Global Ventures
Anabyn exports hotel and home linen from Kerala, India. These guides come from the questions buyers ask our desk. About the team
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