Import Duty Analysis · USA · Women's Apparel
Per the U.S. International Trade Commission's Harmonized Tariff Schedule, a woven cotton blouse (HTS 6206.30.30) carries a 15.4% general duty rate and a knit, man-made-fiber blouse (HTS 6106.20.20) carries 32% — and per the U.S. International Trade Administration, both drop to Free once the qualifying fabric's yarn meets KORUS's yarn-forward rule of origin, with a 7% de minimis allowance for non-originating yarn.
The same women's blouse can clear U.S. customs duty-free under KORUS or face a general tariff as high as 32%, and the difference comes down to two things: where the yarn was spun, and whether the garment is knit or woven. A cotton woven blouse under HTS 6206.30.30 carries a 15.4% general duty rate, while a knit blouse of man-made fiber under HTS 6106.20.20 carries 32% — both drop to Free once the fabric meets KORUS's yarn-forward rule of origin. This guide walks through the landed-cost math, the yarn-forward test, and what a missed qualification does to margin.
The Landed-Cost Price Structure Behind a Korean Apparel Export Price
A landed-cost quote starts with the FOB unit price, then adds freight, insurance, and duty to get the number a U.S. buyer actually pays to bring the goods to port. For most product categories, duty is a small, fairly stable slice of that stack. Apparel is different.
Because U.S. apparel duty rates run from single digits up into the 30% range depending on fiber content, construction, and where the goods qualify as originating, duty is often the single largest swing variable in a Korean apparel export quote — larger than freight, and large enough to turn a competitive price into an uncompetitive one if it is miscalculated.
That is why this guide isolates duty from the rest of the landed-cost stack. Get the HTS classification and the KORUS origin call right, and the same blouse can be priced at two very different numbers — both legally correct, depending on how the garment was actually made.
Why the Same Blouse Can Get Two Different Duty Rates: HTS Classification
Before origin is even considered, two structural choices set the baseline general duty rate: whether the fabric is knit or woven, and what it is made of.
Knitted or crocheted garments fall under HTS Chapter 61; woven garments fall under Chapter 62. Per the U.S. International Trade Commission's Harmonized Tariff Schedule, a woven cotton women's blouse (subheading 6206.30.30) carries a general (MFN, Column 1) duty rate of 15.4%. A knitted women's blouse of man-made fiber (subheading 6106.20.20) carries a general rate of 32% — more than double, on what a buyer might otherwise think of as "the same kind of blouse." A woven dress of synthetic fiber (subheading 6204.43.40), a nearby construction, sits at 16%.
Cotton Woven vs. Knit Man-Made-Fiber Blouse: Duty Rate Comparison
| Cotton Woven Blouse (HTS 6206.30.30) | Knit Blouse, Man-Made Fiber (HTS 6106.20.20) | |
|---|---|---|
| General (MFN, Column 1) rate | 15.4% | 32% |
| KORUS special rate (Korea-origin, qualifying) | Free | Free |
| Column 2 (non-normal-trade-relations) rate | 90% | 72% |
| Fabric construction | Woven | Knitted or crocheted |
The pattern holds across the category: construction (knit vs. woven) and fiber content (natural vs. man-made) are the two variables that move a garment between duty brackets, before anyone asks where it was made. Getting the HTS subheading right is the first step in any landed-cost quote — everything that follows, including whether KORUS can bring that rate to zero, depends on starting from the correct baseline.
The KORUS Yarn-Forward Rule: What It Takes to Reach 0% Duty
For both subheadings above, the Column 1 special rate is Free for goods that qualify as Korea-origin under KORUS. Per the U.S. International Trade Administration (trade.gov), the KORUS rule of origin for textiles and apparel is generally a "yarn-forward" rule: yarn production, and every operation from that point onward — spinning, weaving or knitting, cutting, and sewing — must happen in Korea or the United States. The raw fiber itself can come from anywhere in the world; what matters is where the yarn was spun and everything done after that.
For apparel in HTS Chapters 61 and 62, only the fabric component that actually determines the garment's tariff classification has to meet this test. A supplier cutting and sewing a blouse in Korea does not automatically qualify it for KORUS treatment — the qualifying fabric's yarn has to trace back to Korea or the U.S. as well.
KORUS also includes a built-in tolerance. Per the U.S. International Trade Administration, a garment can still qualify as KORUS-originating even if it contains non-originating fibers or yarns, as long as those non-originating materials make up less than 7% of the total weight of the product. A small share of imported yarn in an otherwise Korea-made blouse does not, by itself, disqualify the KORUS claim.
Does This Blouse Qualify for KORUS 0% Duty?
Where was the qualifying fabric's yarn spun, and where did every step after that happen?
- Yarn spinning and every step after it (weaving or knitting, cutting, sewing) happened in Korea or the United StatesFabric meets the yarn-forward rule -- KORUS-originating, duty rate is Free
- Some non-originating fiber or yarn is present, but it is under 7% of the total product weightThe de minimis provision covers the gap -- still KORUS-originating, duty rate is Free
- Non-originating fiber or yarn is 7% or more of total product weight, or spinning/processing happened outside Korea or the U.S.Yarn-forward test fails -- general (MFN) rate applies: 15.4% for cotton woven, up to 32% for knit man-made fiber
KORUS entered into force on March 15, 2012, per the U.S. International Trade Administration, and duties on the large majority of qualifying textile and apparel products were eliminated immediately at that point; the remaining lines phase out over 3-, 5-, or 10-year staging periods. For most apparel styles moving today, the practical question is no longer "when does the rate drop to zero," but simply whether the specific style meets the yarn-forward test.
What a Duty Miss Does to Landed Cost and Margin
The dollar impact of getting this wrong scales directly with the rate gap. Take a simple FOB unit price of $10. A cotton woven blouse that fails to qualify for KORUS pays $1.54 per unit in duty at the 15.4% general rate — versus $0 if the yarn-forward test is met. A knit, man-made-fiber blouse at the 32% general rate pays $3.20 per unit versus $0 — more than double the cost exposure of the woven-cotton example, on an identical FOB price.
For a distributor working on a typical wholesale margin, a 32-point cost swing on FOB price alone, before freight, insurance, and handling are even added, can consume most or all of the margin built into the order. A shipment priced assuming KORUS Free treatment, that then fails the yarn-forward test at entry, does not just get slightly less profitable — it can flip from profitable to break-even or worse.
The comparison sharpens further against non-FTA sourcing. Per the U.S. International Trade Commission's Harmonized Tariff Schedule, China-origin apparel under specified subheadings — including 6206.30.30 — carries an additional Section 301 duty of 7.5% under HTS 9903.88.15, stacked on top of the general rate. That surcharge does not apply to Korean-origin goods. A buyer comparing a Korea-origin quote against a China-origin quote on landed cost alone, without adjusting for this stacked duty, will understate the true cost gap between the two sourcing options.
Practical Steps Before You Quote a Landed Price
None of this requires guesswork — it requires asking the right question of the supplier before a price is finalized, not after a shipment is held at entry.
Before You Quote a Landed Price
- Confirm the exact HTS subheading for the finished styleKnit vs. woven and fiber content set the general duty rate baseline before origin is even considered
- Ask the Korean supplier where the qualifying fabric's yarn was spunYarn-forward looks at yarn production onward, not just where the garment was cut and sewn
- Calculate the weight share of any non-Korean, non-U.S. yarn or fiberCompare it against the 7% de minimis threshold before assuming a blend disqualifies the style
- Model landed cost twice -- once at Free, once at the general ratePrice and margin should hold up even if a KORUS claim is later challenged or does not apply
- Add any stacked surcharge when comparing Korea to a non-FTA or China-origin quoteChina-origin apparel under the relevant subheadings can carry an extra 7.5% Section 301 duty on top of the general rate
Buyers who get landed cost wrong on apparel usually are not making an obscure mistake — they are pricing off the general rate when they should be pricing off Free, or the reverse, because nobody confirmed the yarn's origin or ran the 7% weight calculation before the quote went out.
Last updated: 2026-07. HTS duty rates, KORUS rule-of-origin requirements, and Section 301 provisions are subject to change. All figures in this guide are for reference and planning purposes only. Confirm current duty rates and origin qualification with a licensed U.S. customs broker or trade compliance advisor before finalizing a landed-cost quote or import filing.
This article is provided for informational and reference purposes only. HTS duty rates, KORUS rule-of-origin requirements, and Section 301 tariff provisions referenced herein are subject to change without notice. Readers should confirm current duty rates and origin qualification with a licensed U.S. customs broker or trade compliance advisor before finalizing a landed-cost quote or import filing. Korea Industry Insights accepts no liability for actions taken solely on the basis of information in this article.
Frequently Asked Questions
Does KORUS 0% duty apply automatically just because the garment was sewn in Korea, or do I have to prove where the yarn itself was spun?
Sewing location alone is not enough. Per the U.S. International Trade Administration (trade.gov), KORUS uses a yarn-forward rule of origin: yarn production and every step after it — spinning, weaving or knitting, cutting, and sewing — must occur in Korea or the United States. A blouse cut and sewn in Korea from fabric woven with yarn spun elsewhere can still fail the KORUS test, even though final assembly happened in Korea.
My Korean cutting-and-sewing factory buys some of its polyester yarn from a mill in China — does that automatically disqualify the blouse from KORUS duty-free treatment, or does the 7% de minimis rule save it?
It depends on how much of the product weight that non-originating yarn represents. Per the U.S. International Trade Administration, KORUS includes a textile and apparel de minimis provision: a good can still qualify as originating even if it contains non-originating fibers or yarns, as long as those materials make up less than 7% of the total weight of the product. If the Chinese-origin polyester yarn stays under that 7% weight threshold, the blouse can still qualify; at or above 7%, it cannot.
Why does the exact same style of women's blouse get a different HTS code and a different duty rate depending on whether it's knit or woven, even if the fiber content is identical?
Construction, not just fiber content, determines the HTS chapter. Per the U.S. International Trade Commission's Harmonized Tariff Schedule, knitted or crocheted garments are classified in Chapter 61 and woven garments in Chapter 62, and each chapter sets its own duty rates by subheading. A knit blouse of man-made fiber (HTS 6106.20.20) carries a 32% general rate, while a woven cotton blouse (HTS 6206.30.30) carries 15.4% — the construction method alone can more than double the baseline duty exposure before origin is considered.
If a shipment fails the yarn-forward test, is there any partial relief, or do I simply pay the full general rate — 15.4% for a cotton woven blouse, or as high as 32% if it's a knit blouse of man-made fiber?
There is no partial relief for failing the test outright — a shipment that does not meet the yarn-forward rule, and does not fall under the 7% de minimis allowance, pays the full general (MFN, Column 1) rate. Per the U.S. International Trade Commission's Harmonized Tariff Schedule, that means 15.4% for a cotton woven blouse under HTS 6206.30.30, or 32% for a knit, man-made-fiber blouse under HTS 6106.20.20. There is no reduced or partial KORUS rate between Free and the full general rate.
Once duty is factored into landed cost, is a man-made-fiber knit blouse sourced from Korea under KORUS actually cheaper than the same style sourced from a non-FTA country, even before labor-cost differences?
On the duty line alone, yes, when the KORUS claim qualifies. A KORUS-qualifying knit blouse from Korea pays Free instead of the 32% general rate that applies to a non-FTA-origin equivalent under HTS 6106.20.20, per the U.S. International Trade Commission's Harmonized Tariff Schedule. Against China-origin goods specifically, the gap can widen further: per the same source, specified apparel subheadings sourced from China carry an additional 7.5% Section 301 duty under HTS 9903.88.15, on top of the general rate, which does not apply to Korean-origin goods.
