HS Code:
Cotton or man-made fiber fabrics and made-up goods, as provided for in note 11(b)(ii) of the Harmonized System (HS), encompass a wide range of textile products including woven fabrics, knitted fabrics, and various made-up articles such as bed linens, tablecloths, and curtains made from cotton or synthetic fibers. These products are critical to the global textile industry, serving both household and industrial purposes. The category falls under various HS codes such as 5208-5212 for cotton fabrics and 5407-5408 for man-made fiber fabrics, depending on the specific type and composition of the material. This sector is influenced by factors like raw material availability, labor costs, and trade policies.
Total Trade Volume
USD 120 billion
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO) Reports
Average Rate
8.5%
Highest Rate
25% (imposed by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU-Vietnam FTA)
Shift towards sustainable and organic cotton fabrics
Increased demand for eco-friendly products, pushing manufacturers to adopt sustainable practices, though at higher production costs
2021-2023
Rising use of man-made fibers due to cost-effectiveness
Reduced dependency on cotton, impacting cotton-producing countries while boosting synthetic fiber industries
2020-2022
Automation in textile manufacturing
Improved production efficiency and reduced labor costs, though leading to job losses in traditional manufacturing hubs
2019-2023
The United States and China agreed to reduce tariffs on certain textile categories, including cotton fabrics, as part of Phase One trade deal negotiations.
January 2023
Increased export opportunities for Chinese manufacturers, potentially shifting market share from other exporters like India and Bangladesh.
The European Union introduced stricter sustainability and traceability requirements for imported cotton and man-made fiber goods under the EU Green Deal.
March 2023
Higher compliance costs for exporters, especially smaller producers, but long-term benefits for sustainable brands in accessing the EU market.
India extended its Rebate of State and Central Taxes and Levies (RoSCTL) scheme for textile exports, including cotton fabrics and made-up goods.
September 2022
Boosted competitiveness of Indian textile exports, leading to a 10% increase in trade volume in key markets like the US and EU.