Clothing manufacturer in Bangladesh for Chilean brands
Chile is Latin America’s most open economy and the most straightforward South American market for clothing made in Bangladesh. The honest complication is that Bangladesh’s duty-free access rests on its LDC status, and Chile has not said what happens to it after graduation, so this page shows you both numbers.
- Duty today
- 0% under Chile’s LDC scheme, used by Bangladesh since 2015
- What changes
- Scheme is LDC-based; post-graduation position not published
- Fallback tariff
- 6% — Chile’s uniform rate on about 99.6% of lines
- IVA
- 19% on CIF value plus duty
- Origin rule
- 50% regional value content, or change of tariff heading
- Competing origins
- Many have Chilean trade agreements
Duty today: zero
Chile’s scheme “Eliminating Import Tariffs on Goods from the Least Developed Countries” entered into force on 28 February 2014 with no expiry date, and Bangladesh began benefiting from it on 1 January 2015, according to Bangladesh’s Export Promotion Bureau. Garments from Bangladesh therefore enter Chile at 0%.
Qualifying is not automatic. The rules of origin require goods to be wholly produced in a least developed country, or to meet either a regional value content of at least 50% or a change in tariff heading. For cut-and-sew garments made from imported fabric, the change-in-heading route is usually the relevant one, but confirm it for your product with your Chilean customs agent.
What graduation may change
The scheme is built for least developed countries, and Bangladesh leaves that category on 24 November 2026. Chile has not, as far as we could find, published how it will treat countries that graduate. We will not fill that gap with a guess.
What we can tell you is the downside. For goods not covered by a trade agreement or preference, Chile applies a uniform 6% tariff on about 99.6% of tariff lines. So the realistic range for a Bangladeshi garment after graduation is between 0% and 6%. That is a manageable swing compared with most markets, and it is worth modelling now rather than discovering on the first post-graduation shipment.
IVA at 19%
Chile’s customs service explains that imports pay the ad valorem duty on the CIF value — goods plus insurance and freight — and then IVA, the value added tax, at 19% on the CIF value plus that duty. With duty at zero, IVA is simply 19% of CIF.
For a registered business IVA is recoverable in the normal way, but it is a real cash-flow line at the border. Put it in the landed cost model from the start.
The competitive picture
Chile has one of the widest networks of trade agreements in the world, which means clothing from many competing origins can enter at preferential rates. While Bangladesh has its LDC access, it competes on equal duty terms; if that lapses, the 6% becomes a gap against agreement partners.
Six per cent rarely decides a sourcing choice on its own, and Bangladesh’s strengths in cotton knitwear at volume are unaffected. But it belongs in the comparison, and it is one more reason to price your Chilean range at both duty levels now.
Shipping and landed cost
Chilean orders ship by sea from Chattogram to San Antonio or Valparaíso, a long routing with transhipment, so lead times need planning well ahead of the season. Remember too that the seasons are reversed: an autumn–winter range for Chile ships during the northern spring.
Landed cost is goods, freight, insurance, the duty rate that applies, IVA at 19% on CIF plus duty, and clearance. Run it through our landed cost calculator at 0% and at 6% duty, and ask us for FOB and DDP side by side.
Sources
Checked . Rules and figures change, so confirm anything that affects your pricing.
- Export Promotion Bureau, Bangladesh — Market access facilities (Chile DFQF in force 28 Feb 2014; Bangladesh benefiting from 1 Jan 2015; rules of origin) (opens in a new tab)
- International Trade Administration — Chile import tariffs (uniform 6% tariff, 19% IVA) (opens in a new tab)
- Servicio Nacional de Aduanas (Chile) — Which taxes must I pay when importing? (duty on CIF, IVA on CIF plus duty) (opens in a new tab)
- UNCTAD — Handbook on duty-free and quota-free market access and rules of origin for LDCs (opens in a new tab)
Popular products for brands selling in Chile.
Each category is made in factories that specialise in it — see everything we make. What drives the price is broken down in our clothing cost guide.
- T-shirtsSingle jersey 140–180 GSM · Midweight jersey 180–220 GSM · Heavyweight jersey 240–300 GSM
- Hoodies and sweatshirtsFrench terry (loopback) 280–380 GSM · Brushed fleece 300–450 GSM · Heavyweight fleece up to 500 GSM
- DenimRigid denim 12–14.5 oz · Comfort stretch 9–12 oz · Lightweight chambray 5–8 oz
- Jackets and outerwearNylon and polyester taffeta and ripstop · Recycled polyester shells (GRS) · Cotton twill and canvas
Questions from buyers in Chile.
Is clothing from Bangladesh duty-free in Chile?
Today, yes. Chile’s scheme eliminating import tariffs on goods from least developed countries entered into force on 28 February 2014 with no expiry date, and Bangladesh has benefited since 1 January 2015, according to Bangladesh’s Export Promotion Bureau. Garments enter at 0% provided they meet the rules of origin: wholly produced in an LDC, or a regional value content of at least 50%, or a change in tariff heading. The caveat is that the scheme is built around LDC status, Bangladesh graduates on 24 November 2026, and we could not find a published Chilean position on what happens then. The downside is bounded: Chile applies a uniform 6% tariff on about 99.6% of tariff lines to goods without a preference. So plan for somewhere between 0% and 6%, confirm the position with your Chilean customs agent as the date approaches, and remember that IVA at 19% applies in every case.
How do I calculate the landed cost of clothing into Chile?
Chile’s customs service sets out the sequence. Start with the CIF value: the cost of the goods plus insurance and freight to Chile. Apply the customs duty to that CIF value — 0% while Bangladesh’s LDC access applies, or the uniform 6% that Chile charges on about 99.6% of tariff lines if it does not. Then apply IVA at 19% to the CIF value plus the duty. Add your customs agent’s fees and port and inland delivery charges. Because freight sits inside both the duty and IVA bases, a cheaper routing saves slightly more than its own cost. Run the numbers at both duty levels now, since graduation in November 2026 is close, and remember the long transhipment routing when you set the calendar. Our landed cost calculator does the arithmetic once you have a real freight quote, and we can quote FOB and DDP side by side.
Other markets in the Americas
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