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Smart textile tariffs and duties

In line with the boom in smart textiles, trade tariff and regulations are coming in to play to regulate this emerging market. This WTiN report discusses trade tariffs and duties, including new and upcoming trade agreements, regulatory components of such agreements and the trade relations regarding some key produces of smart textiles. By Keith Nuthall

A map detailing members and observer governments of the World Trade Organisation. Source: World Trade Organisation

Key takeaways

1. The key to a solid tariff policy on smart textiles is knowing what tariff code applies to what good in a particular country or customs jurisdiction. These can be sub-national or regional.

3. Smart textiles are classified as part of Section XI of the WTO’s Harmonized Commodity Description and Coding System, that provides information on the vast majority of textile and clothing tariff categories, to which importing countries append tariff rates. 4. Most customs administrations offer online sources that can help smart textiles manufacturers understand and plot their exposure to tariffs and duties of all kinds. International law firms – such as US-based Crowell & Moring – that specialise in trade issues can also offer guidance and advice.

2. One of the most important regional trade deals that can link smart textile manufacturers with key markets and potential production outsourcing hubs is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) signed in 2018.