Various types of cotton clothes are among the top 25 exports from India to Canada.
The 7 largest categories of Indian clothing imported into Canada generated US$143.9 million in total sales, down 4.1% from 2008.
Indian clothing sales represent 8.1% of India’s $1.75 billion in overall exports to Canadian importers for 2009. The overall value of shipments from India for all products delivered to Canada shrank 15.1% last year.
Sales of Imported Indian Clothes to Canada
Among the 7 leading categories of cotton clothing that Canadians imported from India during 2009, knitted cotton t-shirts and blouses showed modest gains in sales over 2008.
Below is an analysis of Canadian import sales in 2009 by category of imported Indian clothing.
- Knitted cotton t-shirts, singlets and other vests … US$46.2 million (32.1% of total, up 2.4%)
- Female woven cotton blouses and shirts … $18.8 million (13.1%, up 0.1%)
- Male woven cotton shirts … $18.1 million (12.6%, down 11.8%)
- Knitted cotton sweaters, sweatshirts and waistcoats … $17.5 million (12.1%, down 0.7%)
- Male knitted cotton shirts … $17.3 million (12%, down 1.3%)
- Baby knitted cotton garments … $13.3 million (9.2%, down 13%)
- Female knitted cotton pyjamas and nightdresses … $12.7 million (8.8%, down 16.4%)
Note that pyjamas are spelled pajamas in the U.S.
Tariff Duty Codes and Rates for Clothes Imported from India
There are distinct Harmonized System Codes (HSC) for each of the above product categories. The first 6 digits of the HSC are shown below with the corresponding tariff duty.
- 610910 Knitted cotton t-shirts, singlets and other vests … 18% tariff duty
- 620630 Female woven cotton blouses and shirts … 17%
- 620520 Male woven cotton shirts … 17%
- 611020 Knitted cotton sweaters, sweatshirts and waistcoats … 18%
- 610510 Male knitted cotton shirts … 18%
- 611120 Baby knitted cotton garments … 18%
- 610831 Female knitted cotton pyjamas and nightdresses … 18%.
Because India and Canada have not entered into any general or special preferential trade agreements, Canada Border Services Agency (CBSA) imposes duty rates on products from India according to the Most Favored Nations (MFN) treatment.
Competitive Trade Advantages for Made-in-India Clothing
Canada did export $213,130 worth of men’s and boys’ knitted cotton shirts to India in 2009, but virtually nothing under the other clothing categories.
That amount is 70 times smaller than the $143.9 million that Canadian business paid for the top 8 categories of clothing imported from India.
Despite tariff duties from 17% to 18%, India has a powerful competitive advantage in making cotton clothing articles and trading them with Canada. No doubt lower wages in the developing Indian market is a major factor for that comparative strength.
See also Top Exports Shipped to India So Far in 2010.
Sources: Industry Canada's Trade Data Online based on Statistics Canada reports as of February 27, 2010 and Canada Border Services Agency's online customs tariff manual.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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