Import Duties on Indian Handicrafts — USA, UK, EU, Australia & UAE Guide 2025
Import Duties on Indian Handicrafts — USA, UK, EU, Australia & UAE Guide 2025
Understanding import duties is essential for accurate landed cost calculations when sourcing Indian handicrafts. Duties vary significantly by country, HS code, and applicable trade agreements. This guide provides a practical country-by-country breakdown for the most common import destinations.
HS Codes — The Foundation of Duty Calculation
Before looking up duty rates, you need the correct HS (Harmonised System) code for your products. The HS code is an internationally standardised classification system used by customs authorities worldwide.
Common HS codes for Indian handicrafts:
| Product Type | HS Code | Description |
|---|---|---|
| Wooden decorative articles | 4420 | Wood marquetry and inlaid wood; caskets and cases for jewellery etc. |
| Wooden tableware & kitchenware | 4419 | Tableware and kitchenware of wood |
| Wooden toys | 9503 | Tricycles, scooters, pedal cars, dolls, etc. |
| Brass statuettes & ornaments | 8306 | Bells, gongs, statuettes of base metal |
| Coconut shell articles | 4421 / 1404 | Other articles of wood; vegetable products |
| Hand-knotted carpets | 5701 | Carpets of textile materials, knotted |
| Beads & jewellery (non-precious) | 7117 | Imitation jewellery |
Your Indian supplier should declare the correct HS code on the Commercial Invoice. Incorrect codes can cause customs delays and potential penalties.
United States
Customs authority: U.S. Customs and Border Protection (CBP) Tariff schedule: Harmonized Tariff Schedule of the United States (HTSUS)
| Product | HTSUS Code | Duty Rate |
|---|---|---|
| Wooden decorative articles | 4420.90 | 3.2–5.1% |
| Brass statuettes/ornaments | 8306.29 | 0% |
| Wooden tableware | 4419.11 | 3.2–4.3% |
| Wooden toys | 9503.00 | 0% |
GSP Status: India's GSP (Generalised System of Preferences) benefits in the USA were suspended in 2019. As of 2025, standard duty rates apply. Negotiations for GSP reinstatement are ongoing.
De minimis: Shipments valued under USD 800 are duty-free (CBP de minimis threshold).
Key requirements:
- ISF (Importer Security Filing) for sea freight — filed 24 hours before vessel departure
- For air freight under $2,500: informal entry, often handled by the courier
- Recommend using a licensed Customs Broker (CHB) for commercial shipments over $2,500
United Kingdom
Customs authority: His Majesty's Revenue and Customs (HMRC) / UK Border Force Tariff schedule: UK Global Tariff
| Product | UK Code | Duty Rate |
|---|---|---|
| Wooden decorative articles | 4420 | 0–3.5% |
| Brass statuettes/ornaments | 8306 | 0% |
| Wooden toys | 9503 | 0% |
Import VAT: 20% (Standard Rate) — fully reclaimable by VAT-registered businesses on their next VAT return.
Trade agreement status: UK-India Free Trade Agreement (FTA) negotiations are ongoing. When concluded, duties on many categories are expected to fall to 0%.
Key requirements:
- UK EORI number (Economic Operator Registration and Identification) — apply free at HMRC
- Commodity code declaration on customs import declaration
- For sea freight: appoint a UK freight forwarder / customs broker
European Union (Germany, France, Netherlands, etc.)
Customs authority: European Customs Union (central policy, enforced by national customs) Tariff schedule: EU Combined Nomenclature (CN)
| Product | CN Code | Standard Duty | GSP Duty (India) |
|---|---|---|---|
| Wooden decorative articles | 4420 | 2.7% | 0–2.7% |
| Brass statuettes/ornaments | 8306 | 0% | 0% |
| Coconut shell articles | 4421 | 0–2% | 0% |
EU GSP: India benefits from the EU's Generalised Scheme of Preferences, which reduces or eliminates duties on many categories. Your Indian supplier must provide a GSP Certificate of Origin (Form A) or a REX (Registered Exporter) statement to enable GSP rates.
Import VAT:
- Germany: 19% (Einfuhrumsatzsteuer) — reclaimable
- France: 20% (TVA) — reclaimable
- Netherlands: 21% (BTW) — reclaimable
Key requirements:
- EU EORI number
- For GSP duty reduction: Certificate of Origin Form A from Indian exporter
- ICS2 (Import Control System 2) electronic filing before departure
Australia
Customs authority: Australian Border Force (ABF) Tariff schedule: Australian Customs Tariff
| Product | Code | Duty Rate |
|---|---|---|
| Most wooden handicrafts | 4420 | 0% (India-Australia ECTA) |
| Brass articles | 8306 | 0% |
| Wooden toys | 9503 | 0% |
India-Australia ECTA: The India-Australia Economic Cooperation and Trade Agreement (AI-ECTA), signed in April 2022, has eliminated or significantly reduced duties on most Indian handicraft categories.
GST: 10% Australian GST applies to commercial imports over A$1,000. Fully claimable as input tax credit for GST-registered businesses.
Critical — Biosecurity:
- All wooden products must comply with ISPM-15 (heat treatment or fumigation)
- Phytosanitary certificate from Indian plant quarantine authority required
- Declare all wood products to the ABF — failure to declare attracts heavy fines
Key requirements:
- Australian Business Number (ABN) with import/export account
- ISPM-15 compliant packaging + phytosanitary certificate
- Customs broker recommended (complex biosecurity rules)
UAE & GCC Countries
Customs authority: Federal Customs Authority (UAE) / GCC Unified Customs Tariff: GCC Common External Tariff
| Product | Code | Duty Rate |
|---|---|---|
| All handicrafts (standard) | Various | 5% |
| Categories under India-UAE CEPA | Various | 0% (verify eligibility) |
India-UAE CEPA: The India-UAE Comprehensive Economic Partnership Agreement (signed February 2022) has eliminated duties on many Indian export categories. Many handicraft HS codes now qualify for 0% duty. Confirm eligibility for your specific HS codes.
VAT: 5% UAE VAT — reclaimable for VAT-registered UAE businesses.
Key advantages:
- Proximity to India: air freight in 2–3 days
- Efficient customs clearance at Dubai and Abu Dhabi
- No complex biosecurity requirements
Canada
Customs authority: Canada Border Services Agency (CBSA) Tariff schedule: Schedule to the Customs Tariff
| Product | Tariff Code | Most Favoured Nation Rate | GPT Rate (India) |
|---|---|---|---|
| Wooden decorative articles | 4420 | 6.5–7% | 3.5% (GPT) |
| Brass articles | 8306 | 0% | 0% |
| Wooden toys | 9503 | 0% | 0% |
GPT: Canada's General Preferential Tariff applies to India, reducing duties on many categories below the standard MFN rate.
GST/HST: 5% federal GST + provincial HST/PST on imports — fully reclaimable for GST/HST-registered businesses.
Key requirements:
- Canadian Business Number (BN) with RM (import/export) account
- CBSA customs declaration for commercial imports
- PARS (Pre-Arrival Review System) for faster clearance
Practical Tips for All Markets
- Always get the correct HS code confirmed in writing by your supplier before ordering.
- Calculate your landed cost = Product cost + Freight + Import duty + VAT/GST. This is your true cost of goods.
- VAT/GST is usually recoverable for B2B buyers — don't let it discourage you. Factor in the cash flow timing.
- Use a customs broker in your country for the first few shipments. The fee ($50–$200 per shipment) is worth the expertise.
- Request all documents upfront — Commercial Invoice, Packing List, COO, and any country-specific certificates.
How Vidhiraj Global Impex Helps
We prepare complete export documentation for every shipment, including:
- Commercial Invoice with correct HS codes
- Packing List
- Certificate of Origin (COO)
- GSP Form A (for EU/Canada/Japan)
- Phytosanitary Certificate (for Australia, Japan, USA)
- Insurance Certificate
View our export services → or find your country's specific guide →.
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