Importing Cashmere from Nepal: Duty, Origin and Landed Cost
This page explains what determines the duty you will pay. It does not tell you what that duty is, because nobody can tell you that without knowing your country, your product and its classification — and any page that quotes you a single number is either out of date or making it up.
SOURCE: This page sets out general customs principles and links to official government and intergovernmental sources. It quotes no rates.
WHAT BUYERS SHOULD CHECK: Your destination country’s current tariff schedule, your product’s HS classification, the applicable rules of origin, and whether any preference scheme currently applies to goods of Nepali origin. Confirm with your customs broker or your national customs authority before you commit to a landed-cost calculation.
The five things that decide your duty
| Factor | Why it changes the answer |
|---|---|
| 1. Destination country | Every country sets its own tariff schedule. A rate that applies in the EU tells you nothing about the US, Japan, Australia or the Gulf. |
| 2. HS classification | The Harmonized System code determines the line in the tariff. A knitted scarf and a woven scarf sit in different chapters and can carry very different rates. |
| 3. Fibre composition | Many tariff lines distinguish by fibre. 100% cashmere, a cashmere/silk blend and a cashmere/wool blend may classify differently, and the percentage split matters. |
| 4. Origin, and the rules that prove it | Substantial transformation determines origin. Whether a preference applies depends on satisfying that scheme’s specific rules of origin — and on being able to document it. |
| 5. Whether a preference scheme currently applies | Preference programmes change, lapse, are renewed and are graduated out of. The position last year is not evidence of the position today. |
HS classification: where cashmere goods usually sit
These are the headings cashmere products commonly fall under. Treat them as a starting point for a conversation with your broker, not as a classification decision — the final call belongs to your customs authority, and a binding ruling is the only way to be certain.
| Product | Typically classified around | What can change it |
|---|---|---|
| Woven shawls, scarves, stoles, wraps | Heading 6214 — of wool or fine animal hair | Whether the piece is woven or knitted; fibre blend; whether it is classified as a garment rather than an accessory |
| Knitted shawls, scarves, stoles | Heading 6117 — knitted made-up clothing accessories | Construction method is decisive here |
| Knitted sweaters, pullovers, cardigans | Heading 6110 — with a specific subheading for goods of Kashmir (cashmere) goats | Fibre composition and percentage; gender/size categorisation in some schedules |
| Blankets and throws | Heading 6301 — of wool or fine animal hair | Whether the item is a blanket or a travelling rug; dimensions; finishing |
| Woven garments | Chapter 62 | Garment type and gender categorisation |
Rules of origin: the part most buyers underestimate
Origin is not “where it shipped from”. It is where the goods underwent substantial transformation, judged by that scheme’s own rules. For textiles this usually means one of:
- A change in tariff heading — the imported input (yarn) and the finished good sit in different headings
- A specified process — for example, that the goods must be made from yarn, or from fibre, in the beneficiary country
- A value-added threshold — a minimum percentage of value created locally
Cashmere manufactured in Nepal is typically made from imported yarn. Whether that satisfies a given scheme’s rule depends entirely on how that scheme is written. Some textile rules are satisfied by weaving or knitting from imported yarn; others require the yarn itself to be produced in the beneficiary country. This is the single most common reason a preference claim fails at the border.
Ask your broker one precise question: “For heading [code] under [scheme], what is the product-specific rule of origin, and is manufacture from imported yarn sufficient?” That question gets a usable answer. “Is it duty free?” does not.
Preference schemes and LDC status
Nepal has for many years been classified by the United Nations as a Least Developed Country, and many importing countries operate preference schemes that extend reduced or zero duty to goods originating in LDCs. Schemes of this kind exist in the EU, the UK, Canada, Japan, Australia and elsewhere, each with its own name, coverage and rules of origin.
1. Nepal’s LDC status is not permanent. Nepal has been in a graduation process from the LDC category, with transition arrangements attached. Graduation affects eligibility for LDC-specific preferences, sometimes immediately and sometimes after a transition period that differs by scheme. Check the current position with the UN Committee for Development Policy and with the specific scheme you intend to claim under.
2. Country-specific programmes lapse and are renewed. The United States has operated Nepal-specific trade preference legislation covering certain product categories, with defined expiry dates. Preference programmes of this type routinely expire and are sometimes renewed retroactively. Do not plan a landed cost on a programme without confirming it is in force on your date of entry.
Where to check — official sources only
| What you need | Official source |
|---|---|
| EU tariffs, rules of origin, documentation by product and origin | European Commission — Access2Markets |
| US tariff schedule | USITC Harmonized Tariff Schedule |
| US classification rulings | US CBP — CROSS rulings database |
| UK tariff and preference | UK Trade Tariff |
| Canada tariff | Canada Border Services Agency |
| Japan tariff | Japan Customs |
| Australia tariff | Australian Border Force |
| Nepal export procedures and documentation | Department of Customs, Nepal · Nepal Trade Information Portal |
| LDC category and graduation status | UN DESA — LDC category |
| HS nomenclature | World Customs Organization |
Documentation we can provide
| Document | Purpose | Notes |
|---|---|---|
| Commercial invoice | Valuation and classification | Itemised by style, composition and quantity |
| Packing list | Carton contents, weights, dimensions | Matched to the invoice line by line |
| Certificate of origin | Evidence of Nepali origin | Issued through the authorised Nepali issuing body. Tell us at order stage which form your scheme requires — some schemes require a specific form or a registered-exporter statement rather than a general certificate |
| Fibre composition declaration | Supports classification and labelling | Stated as actual composition, e.g. 100% cashmere or 70/30 cashmere/silk |
| Airway bill or bill of lading | Transport document | Air or sea, per your instruction |
| Yarn certificates where they exist | Supports sustainability or safety claims | Held by our yarn suppliers, not by Pashmina Studio — we pass on the actual certificate for the specific yarn |
Building a real landed cost
Our prices are ex-works or FOB Kathmandu. Everything below is yours to add.
| Component | Notes |
|---|---|
| Goods value (ex-works or FOB Kathmandu) | The invoice figure |
| Inland transport and export handling in Nepal | Where you buy ex-works |
| International freight | Air for speed and low volume; sea for weight and cost. Cashmere is light and high-value, so air is more often economic than it is for other textiles |
| Insurance | Decide who carries the risk and from where — set the Incoterm explicitly on the order |
| Import duty | Per your tariff line and any preference actually claimed and granted |
| Import VAT, GST or sales tax | Often calculated on duty-inclusive value, which surprises first-time importers |
| Customs brokerage and clearance | Per entry |
| Port, terminal and handling charges | Frequently omitted from first estimates |
| Inland delivery at destination | To your warehouse |
A first-time importer’s most common mistake is pricing retail from the invoice figure. On a small air shipment, freight and clearance can add a meaningful percentage before duty is even considered. Build the model before you place the order, not after the goods arrive.
Air or sea
| Air freight | Sea freight | |
|---|---|---|
| Transit | Days | Weeks, plus inland legs — Nepal is landlocked, so sea shipments route through a transit port |
| Cost basis | Chargeable weight — cashmere is light, which works in your favour | Volume — advantageous only at real volume |
| Suits | Most cashmere orders, sample shipments, anything on a tight calendar | Large blanket orders and high-volume programmes |
| Calendar impact | Minimal | Add the extra weeks to your backward schedule from the start |
Questions worth asking your broker
- What heading and subheading applies to this exact product, in this exact composition?
- What is the current MFN rate on that line for my country?
- Is there a preference scheme applicable to goods originating in Nepal, and is it in force today?
- What is the product-specific rule of origin under that scheme, and does manufacture from imported yarn satisfy it?
- What origin document does the scheme require, and who must issue it?
- Is import tax calculated on the duty-inclusive value?
- Should I apply for a binding classification ruling before I commit to a repeat programme?
Further reading
- Cashmere from Nepal — what Made in Nepal actually means, and the real supply chain
- Wholesale cashmere — terms, minimums and shipping basis
- Bulk cashmere orders — scheduling and documentation at volume
- Quality and specifications — composition as it appears on your invoice and label
- Sourcing FAQ
Need the paperwork right first time?
Tell us your destination country and the scheme you intend to claim under, and we will confirm what origin documentation we can issue and what information we need from you to issue it correctly.