HS Code:
Cotton or man-made fiber apparel, classified under Harmonized System (HS) codes related to Chapter 61 (knitted or crocheted apparel) and Chapter 62 (non-knitted or crocheted apparel), includes a wide range of clothing items such as shirts, trousers, dresses, and outerwear made primarily of cotton or synthetic fibers. This category is a significant segment of the global textile and apparel industry, driven by consumer demand for affordable, versatile, and durable clothing. Note 11(a)(I)(A) to the relevant subchapter often pertains to specific quota or tariff classifications under trade agreements, focusing on apparel products subject to particular import/export restrictions or benefits.
Total Trade Volume
USD 250 billion
Data from 2022
Source
World Trade Organization (WTO) and International Trade Centre (ITC) Trade Map
Average Rate
12%
Highest Rate
32% (applied by certain countries on non-preferential trade partners)
Lowest Rate
0% (under free trade agreements like the EU-Vietnam FTA or USMCA)
Shift to Sustainable Materials
Increased demand for organic cotton and recycled man-made fibers due to consumer awareness of environmental impact, pushing manufacturers to adopt eco-friendly practices.
2021-2023
Nearshoring in Apparel Production
Rising labor costs in traditional hubs like China have led to production shifts to countries like Vietnam and Bangladesh, closer to consumer markets in Europe and North America.
2020-2022
E-commerce Boom
Growth in online retail has accelerated demand for fast fashion, benefiting low-cost producers but increasing pressure on supply chain transparency.
2019-2023
Phase One of the US-China trade deal reduced tariffs on certain apparel categories, but tensions remain over cotton sourcing from Xinjiang, leading to import bans on specific products.
January 2022
Disrupted supply chains for US retailers, prompting diversification to other countries like Vietnam and Bangladesh.
The EU introduced stricter sustainability and due diligence requirements for textile imports, mandating transparency in supply chains for cotton and man-made fiber apparel.
March 2023
Increased compliance costs for exporters but potential long-term benefits through access to eco-conscious markets.
The International Accord for Health and Safety in the Textile and Garment Industry was extended, ensuring continued improvements in factory safety standards in Bangladesh.
September 2021
Strengthened buyer confidence in Bangladeshi apparel, maintaining its position as a top exporter.