Clothing manufacturer in Bangladesh for Brazilian brands
Brazil is a large and growing market for Bangladeshi clothing: exports there rose 17.89% to US$197.92 million in FY2025–26, on Export Promotion Bureau figures compiled by BGMEA. It is also one of the most heavily taxed. This page shows how the taxes stack, what changes with Brazil’s tax reform, and what you need in place before the first container. CMB Sourcing Ltd. is a knitwear manufacturer and buying house in Narayanganj, Dhaka: knitwear and caps are made in our own factory, everything else in an audited partner factory, and we manage sampling, quality checks and shipping.
- Market size
- US$197.92m of Bangladeshi clothing in FY2025–26, up 17.89%
- Duty
- 35% on most garments (Mercosur tariff)
- Federal taxes
- IPI, plus PIS and COFINS on imports
- State tax
- ICMS, about 17–20% for most products
- Importer
- RADAR registration to use Siscomex
- Labels
- Inmetro Portaria 118/2021
- Imports from Bangladesh
- US$253m of apparel in 2025 (UN Comtrade)
- The other direction
- Brazil sold Bangladesh US$815m of cotton in 2025
- Minimum order
- From 500 pieces per style and colour; some categories start higher, confirmed on your quote
- Price
- Quoted per style, from your tech pack or a reference garment; your quote states the shipping term.
In short
Clothing from Bangladesh pays Mercosur’s common external tariff in Brazil, 35% on most garments, with no trade agreement to reduce it. On top come IPI, at the rate the TIPI table sets for the product, and PIS and COFINS on imports (11.75% combined under the standard regime, plus an additional 0.6% COFINS on clothing in 2026, taxes Brazil’s tax reform is replacing), and state ICMS of about 17–20% for most products, calculated on a base that includes itself. Importers need RADAR registration, and labels follow Inmetro Portaria 118/2021.
Duty: 35% under the Mercosur tariff
Brazil applies Mercosur’s common external tariff, which runs from zero to 35%, and standard clothing such as t-shirts, jeans and suits sits at the top of that range. Bangladesh has no trade agreement with Brazil or Mercosur, so its garments pay the full rate.
The same 35% applies to the other large Asian origins, so Bangladesh competes with China, India and Vietnam on equal duty terms. The disadvantage is against Mercosur members themselves, whose goods move within the bloc duty-free.
How the import taxes stack
The import duty is only the first layer. The Industrialised Products Tax (IPI) is charged at the rate set for the product in Brazil’s TIPI table, on the customs value plus duty. PIS and COFINS on imports add 11.75% combined under the standard regime, charged on the customs value alone, and clothing (chapters 61 to 63) pays an additional COFINS of 0.6 percentage points in 2026, which unlike the base rates cannot be taken as a credit (the law sets 0.4 for 2027, the year the CBS is due to replace COFINS). Then the state charges ICMS, typically between 17% and 20% for most products depending on the destination state, and it is calculated “por dentro”: the tax is included in its own base, so the effective rate is higher than the headline one.
Because IPI is charged on the customs value plus duty, and ICMS on a base that includes the duty, IPI, PIS, COFINS and the ICMS itself, the total tax on a garment is far more than 35%. Model it with a Brazilian customs broker for your state before you set retail prices.
| Charge | Rate | Notes |
|---|---|---|
| Import duty (II) | 35% on most garments | Mercosur common external tariff |
| IPI | As set in the TIPI table for the product | Charged on customs value plus duty |
| PIS and COFINS on imports | 11.75% combined, standard regime, plus 0.6% additional COFINS on clothing in 2026 | Being replaced under the tax reform |
| ICMS | About 17–20% for most products, by state | Calculated on a base that includes itself |
Brazil’s tax reform
Brazil is replacing its consumption taxes with a dual VAT. After a test year in 2026, the federal CBS replaces PIS and COFINS from 2027, when IPI also falls to zero for most products. The state and municipal IBS then replaces ICMS and ISS gradually, with the transition complete in 2033. The import duty itself is not part of the reform.
For an importer, the practical point is that the tax lines on your landed cost will change during the life of a supplier relationship. Ask your broker which regime applies on the date your goods clear, rather than relying on last year’s calculation.
Register as an importer: RADAR
Every import into Brazil is declared through Siscomex, and a company needs RADAR registration with the Federal Revenue Service, plus a valid digital certificate for its legal representative, to use it. RADAR comes in levels, and the limited one caps imports at US$50,000 or US$150,000 per six months, so check that yours covers the value of the orders you plan.
Selling in Brazil? Get a landed-cost quote
Labels: Inmetro Portaria 118/2021
Textile labelling in Brazil is governed by Inmetro Ordinance 118 of 11 March 2021. It applies to products made at least 80% of textile fibres by mass and requires permanent, wash-resistant labels in Portuguese showing the fibre composition, the name or registered trademark and the CNPJ of the responsible company, the country of origin, the size and care instructions. Importers are responsible for the content.
Send us the label text, including your CNPJ, with the tech pack; the labels are made and sewn in at the factory so the goods arrive ready for sale.
Shipping and seasons
Brazilian orders ship by sea from Chattogram with transshipment, usually to Santos, on one of the longer routes from Bangladesh. The seasons are reversed, so an autumn–winter range for Brazil ships during the northern spring. Build the transit and the clearance time into your calendar from the start.
A two-way trade built on cotton
UN Comtrade records US$282 million of Brazilian imports from Bangladesh in 2025, US$133 million knitted and US$119 million woven apparel, and US$2.72 billion of Brazilian exports to Bangladesh the same year, led by sugar at US$874 million and cotton at US$815 million. Bangladeshi spinning mills are among the largest buyers of Brazilian cotton, so a Brazilian brand sourcing t-shirts in Bangladesh may well be buying back its own country’s fibre as finished garments.
That relationship is why both governments talk about a trade deal: in July 2025 the president of Brazil’s central bank told Bangladesh’s ambassador that Brazil would send a draft memorandum of understanding as the basis for a possible agreement, and the ambassador put bilateral trade above US$4 billion a year. Nothing has changed the 35% Mercosur duty yet, and this page will say so when it does.
Working with us from Brazil
Brazil is nine hours behind Bangladesh. Goods ship by sea from Chattogram to Santos or Itajaí, one of the longer routings we plan; we quote FOB Chattogram or DDP to your warehouse, in US dollars, and you can ask for the 35% duty and the federal and state taxes to be listed on the quote so your despachante can check the landed cost line by line.
- Factory named before production, with its address, audit report and Accord status
- Portuguese-language label to Inmetro Portaria 118/2021 approved on the pre-production sample
- Cotton origin records to request from the mill where a Brazilian-cotton story matters to your brand
- Quality checks on the line and the AQL final inspection report, then invoice, packing list, transport document and origin documents
Sources
Checked . Rules and figures change, so confirm anything that affects your pricing.
Show all 15 sourcesHide the sources
- BGMEA: Export Performance, Bangladesh’s apparel exports by country, FY2025–26 (Export Promotion Bureau data; Brazil US$197.92m, up 17.89%) (opens in a new tab)
- USTR — 2012 National Trade Estimate Report on Foreign Trade Barriers: Brazil (Mercosur common external tariff from zero to 35%) (opens in a new tab)
- Import to Brazil — Brazil import taxes explained: II, IPI, ICMS, PIS and COFINS (opens in a new tab)
- Nova Trade Brasil — Brazil import duties 2026 and the tax reform (opens in a new tab)
- Procuradoria-Geral da Fazenda Nacional — PIS/COFINS-Importação (the base is the customs value: the Supreme Court struck out ICMS and the contributions themselves, and the PGFN no longer contests excluding II and IPI), in Portuguese (opens in a new tab)
- Guelcos — Siscomex, Portal Único and RADAR registration (opens in a new tab)
- Inmetro — Main provisions of Portaria Inmetro nº 118 of 2021 (textile labelling) (opens in a new tab)
- UL Solutions — Textile products labelling in Brazil (opens in a new tab)
- Trading Economics (UN Comtrade) — Brazil imports from Bangladesh, 2025, by product (opens in a new tab)
- Trading Economics (UN Comtrade) — Brazil exports to Bangladesh, 2025 (sugar, cotton, cereals) (opens in a new tab)
- The Business Standard — Brazil keen to ink trade deal with Bangladesh (central bank president; draft MoU; 26 July 2025) (opens in a new tab)
- Planalto: Lei nº 10.865/2004, current text, art. 7, I (base: the customs value), art. 8 (PIS/PASEP-Importação 2.1% and COFINS-Importação 9.65%; § 21, item VII: additional COFINS-Importação on chapters 61 to 63; § 21-A: 0.8% in 2025, 0.6% in 2026, 0.4% in 2027) and art. 15 § 1-A (the additional gives no credit), in Portuguese (opens in a new tab)
- Planalto: Lei nº 14.973 of 16 September 2024, art. 2 (transition for the additional COFINS-Importação of art. 8 § 21 of Lei nº 10.865/2004), in Portuguese (opens in a new tab)
- WTO — Tariff profile, Brazil (2025 MFN applied rates: clothing average 35.0%, maximum 35%, no duty-free lines) (opens in a new tab)
- TaxUp — RADAR Siscomex: modalities under IN RFB 1.984/2020 as amended by IN RFB 2.292/2025 (limited: US$50,000 or US$150,000 per six months; express and unlimited without a cap), in Portuguese (opens in a new tab)
Popular products for brands selling in Brazil.
Each category is made in factories that specialise in it. See every product category. What drives the price is broken down in our clothing cost guide.
- T-shirtsMinimum 500 pieces
- Sweaters and knitwearMinimum on your quote
- DenimMinimum 2,000 pieces
- Woven shirts and bottomsMinimum 2,000 pieces (woven shirts)
Minimums are ours, per style and colour; every style is quoted from your tech pack.
Questions for brands selling in Brazil.
What is the import duty on clothing from Bangladesh into Brazil?
Most garments from Bangladesh pay 35% import duty in Brazil under Mercosur’s common external tariff, because Bangladesh has no trade agreement with Brazil or Mercosur to reduce it. The duty is only the first layer, and IPI and ICMS are charged on bases that include it. The Industrialised Products Tax (IPI) follows at the rate set for the product in the TIPI table, on the customs value plus duty. PIS and COFINS on imports add 11.75% combined under the standard regime, plus an additional 0.6% COFINS on clothing in 2026, both charged on the customs value alone. The destination state then charges ICMS, typically 17% to 20% for most products, calculated so that the tax sits inside its own base. The total is therefore well above 35% and varies by state. Brazil’s tax reform replaces PIS and COFINS with the federal CBS from 2027 and phases ICMS into IBS by 2033, so ask a Brazilian customs broker which regime applies on your clearance date before you set retail prices.
What do I need to import clothing into Brazil?
Start with registration. Every import is declared through Siscomex, and your company needs RADAR registration with the Federal Revenue Service and a valid digital certificate for its legal representative; RADAR has levels, and the limited one caps imports at US$50,000 or US$150,000 per six months, so check yours covers your orders. Next, labels: Inmetro Ordinance 118 of 2021 requires permanent, wash-resistant labels in Portuguese showing fibre composition, the name or registered trademark and the CNPJ of the responsible company, country of origin, size and care instructions, for products at least 80% textile by mass. The factory makes and sews these in from your text, so include your CNPJ with the tech pack. Finally, a customs broker to classify each style and calculate the taxes for your state. With those in place, the rest is planning: Brazil is a long sea route from Chattogram, and its seasons are the reverse of Europe’s.
Does clothing from Bangladesh pay less duty in Brazil than clothing from China?
No. Clothing from Bangladesh and clothing from China pay the same 35% import duty in Brazil on most garments, because neither country has a trade agreement with Brazil or with Mercosur, the customs union whose common external tariff Brazil applies. India and Vietnam are in the same position, so among the large Asian origins duty does not decide the choice; price, quality and transit time do. The suppliers that pay less are the Mercosur members themselves, whose goods move within the bloc duty-free. Brazil and Bangladesh have discussed a trade deal, but no agreement has been signed, so plan at 35% and keep the origin documents with every shipment in case one is agreed. Bangladesh’s graduation from Least Developed Country status, scheduled for 24 November 2029, changes nothing in Brazil either, because Bangladesh already pays the full Mercosur rate. Buying Brazilian cotton does not change the garment’s origin: it is Bangladeshi because it is cut and sewn there.
Can my Bangladesh-made garments use Brazilian cotton?
Often they already do. Brazil sold Bangladesh US$815 million of cotton in 2025 on UN Comtrade figures, and Bangladeshi spinning mills are among the largest buyers of Brazilian fibre, so the yarn in a Bangladesh-made t-shirt frequently started in Mato Grosso or Bahia. If that origin matters to your brand, tell us at sampling and ask for the mill’s cotton origin records on the yarn used for your fabric, which mills keep because US and European buyers ask for them. What it does not do is change the customs origin of the garment, which is Bangladeshi because that is where it was cut and sewn, or the 35% Mercosur duty. What it can do is give a Brazilian brand a true story, a garment of Brazilian cotton spun, knitted and sewn in Bangladesh, and support a fibre-content claim with paperwork rather than an assumption.
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Ways to work with us
We are a knitwear manufacturer and garments buying house in Narayanganj, Dhaka: knitwear and caps are made in our own factory, everything else in an audited partner factory named to you in writing before production starts.
Guides on this topic
Selling in Brazil? Get a landed price.
Send a tech pack, a sketch or a photo of a garment you like. We reply within one working day with questions or a first costing.
- A reply within one working day
- An enquiry, not an order: you are committed to an order only when you sign the written order confirmation
- Certificates and audit reports shared before production
- AQL final inspection report before you approve shipment
- Your patterns and artwork never shown to or reused for other buyers