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India’s Central Board of Indirect Taxes and Customs (CBIC) has suspended all customs duties on imported raw cotton from 19 August until 30 September 2025. The temporary waiver removes the current 11% import duty on cotton, comprised of the 5% basic customs duty, 5% agriculture infrastructure and development cess, and 10% social welfare surcharge on both.
With many production lines relocating to Mainland China and Southeast Asia, Hong Kong's textiles industry has instead evolved in recent years into a hub for managing trade operations. It mainly handles high value-added work such as branding, procurement, logistics and accounting. Only a small number of production lines remain in Hong Kong. Nevertheless, Hong Kong’s textiles industry continues to serve not only local clothing manufacturers but also those on the mainland and other offshore production bases. The industry has a good reputation as a supplier of quality dyed and printed fabrics. It is also strong in cotton spinning, denim weaving, knit-to-shape panel knitting and fine-gauge cotton knit manufacturing.
The Directorate-General of the European Commission (“Commission”) for Taxation and Customs Union published a report last month on controls on products entering the EU market. The report aims to address the challenges faced due to product non-compliance during 2024 and to identify measures to further improve enforcement of EU rules. In light of this, Hong Kong traders, particularly those involved in e-commerce, should be aware of the future implications of the proposed EU customs reform.
On 9 September 2025, the European Parliament voted in plenary to adopt new EU rules to reduce textile waste. Pursuant to the new rules, once implemented throughout the EU, producers will have to cover the costs of collecting, sorting and recycling waste textiles. The European Parliament also adopted 2030 targets to reduce food waste.
Sustainable fashion is commonly associated with the recycling or upcycling of clothing and accessories, but can also be integrated at the initial phase of textile production. United Textile Mills Co. Ltd (UTM) is one of Thailand’s leading textile manufacturers. Managing Director, Nutra Uttamapinant, outlines her companies’ strategies for leveraging innovation and technology to minimise the environmental impact during textile production.
Clothing exports experienced a 7% year-on-year decline in the first half of 2025. According to Euromonitor estimates, apparel retail sales grew modestly by 3% in 2025. However, recent trade tensions and tariff policies may significantly disrupt supply chains, potentially impacting overall demand and Hong Kong’s exports.
Industry stakeholders are calling for more flexibility in proposed exemptions to the ban on destroying unsold clothing, accessories and footwear. Environmental groups and waste associations warn that this could create lasting loopholes in the law. These debates follow the European Commission’s publication of a draft delegated Regulation setting out such exemptions.
On April 9, 2025 Turkey’s Ministry of Trade published Official Gazette No 32865 which updates labeling requirements for consumer products containing animal derived materials. The regulation, effective June 9, 2025, applies to a wide range of consumer goods, including but not limited to textiles, footwear, gloves, bags, wallets, belts, watches, stationery, toys, furniture and carpets.
