Duty and Tariff Considerations for Knitted Activewear

Duty is one of the few cost lines in an apparel program that is set by a decision rather than by negotiation, and the decision is classification. The same sports bra can be assessed at different rates depending on how it is classified and where it is deemed to originate, and a wrong declaration is not a one-off cost. It becomes a per-shipment cost, plus penalties and a compliance record that follows the importer.

Classification drives the rate

Knitted garments are classified separately from woven ones, and within knitted apparel the code depends on garment type, fiber composition and sometimes construction features. A bra is not classified as a generic top. The code is determined against your market's tariff schedule, and it should be confirmed by a licensed customs broker or by a binding ruling request before you ship at volume. Do not accept a code from a factory or a freight forwarder as authoritative; they are not the party liable for the declaration.

Fiber composition changes the answer

The declared composition has to match the actual garment, including the elastane percentage and the lining and pad materials. A range built on a nylon and spandex shell will not necessarily classify the same way as one built on polyester and spandex, and a change of shell supplier mid-program can change the declaration. Keep fiber composition on your tech pack and re-confirm the code whenever the composition changes.

Country of origin is not where it was packed

Origin rules generally look at where the garment was substantially transformed, which for cut-and-sew apparel usually means where it was sewn, but some programs also consider where the fabric was made. If you are sourcing fabric in one country and sewing in another, ask your broker to confirm the origin determination on the specific facts of your program before you print country of origin labels. Getting this wrong is a labeling violation as well as a duty problem.

Duty is a planning input, not a surprise

Treat the confirmed duty rate as a fixed line in your landed cost model, alongside freight and inspection. Programs that omit duty from the cost sheet discover it at clearance and then spend the rest of the season trying to recover margin from the factory. If you are comparing sourcing locations, compare them on a fully landed basis, not on FOB.

Questions to ask your broker first

Confirm the classification for each style, the origin determination, whether any preferential or free trade program applies to your facts, what documentation you need to support the claim, and what your record-keeping obligation is. Ask for the answers in writing and keep them with the style file. Duty planning is unglamorous, and it is also one of the few places where an hour of work protects margin for the life of the program.