In this article
Short answer: a US importer of Indian terry towels should budget about 19.6 percent duty: roughly 9.6 percent MFN plus a 10 percent Section 301 duty that took effect on 24 July 2026. China carries a heavier duty stack and a cotton traceability problem at the border. India is no longer duty-light in the US, but it is still the simpler origin.
The India sum
| Per towel | |
|---|---|
| 550 GSM bath towel, FOB Cochin | $2.50 |
| MFN duty, about 9.6 percent | $0.24 |
| Section 301 duty, 10 percent | $0.25 |
| Total duty | $0.49 |
US duty is assessed on the FOB value. The MFN rate on towels runs from about 9.6 to 11.4 percent depending on the exact tariff line, and bed linen from about 3.4 to 8.4 percent, so classification matters.
How the origins compare in the US
| Origin | On top of MFN | Other points |
|---|---|---|
| India | 10 percent Section 301 | Cotton grown at home |
| Pakistan | 10 percent Section 301 | Same as India |
| Bangladesh | 10 percent Section 301 | Imports most of its cotton |
| Türkiye | 12.5 percent Section 301 | Short runs, higher prices |
| China | Older Section 301 duties plus later measures | Xinjiang cotton presumed barred under US forced-labour law |
Why China is harder than its duty rate suggests
US Customs presumes that goods containing cotton from Xinjiang are made with forced labour and bars them. A large share of China's cotton comes from Xinjiang. An importer of Chinese cotton towels needs fibre traceability documents ready for a detention, and a detained container costs more than any duty difference.
Indian towels made from Indian cotton avoid that question, though you should still keep origin records for the yarn.
What is still uncertain
- A second Section 301 case, on excess capacity, names India and Bangladesh and is still open. Rates could change.
- Tariff measures have changed several times in two years. Check the current position with your customs broker before you fix a selling price.
We publish these as planning figures, checked in October 2026, and not as customs advice.
What US buyers can do
- Classify precisely. A point or two of MFN rides on the tariff line.
- Buy FOB and control the freight. Duty is on FOB value, so freight is not dutiable, but it is still your largest added cost.
- Ask about duty drawback if you re-export. See our US duty drawback guide.
- Compare landed, not FOB. A cheaper FOB price from an origin with a traceability risk is not cheaper.
Transit and terms
From Cochin, sea transit is 18 to 22 days to the US West Coast and 25 to 30 days to the East Coast. Production takes 30 to 45 days.
Go deeper
See India vs China towels for US buyers and our US towel import duty page. The duty calculator works a landed cost for your quantity. For an FOB 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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