The India-Australia Economic Cooperation and Trade Agreement (ECTA) has cut import duties on Indian garments to 5%. Here is what this means for Australian buyers sourcing t-shirts from Tirupur — including HS code details, documentation, and how to claim the preferential rate.
The India-Australia Economic Cooperation and Trade Agreement (ECTA), which came into force on 29 December 2022, has significantly reduced import duties on Indian garments entering Australia. Here is what this means for Australian buyers sourcing t-shirts from Tirupur.
The ECTA is a bilateral free trade agreement between India and Australia. Under the agreement, Australia has reduced import duties on Indian textiles and garments from 5% to 0% (phased over 5 years). As of 2026, the duty on most Indian garments entering Australia is 0–2.5%, down from the standard 5%.
T-shirts (HS 6109.10): Duty reduced from 5% to 0% (fully phased in by 2026). Polo shirts (HS 6105.10): Duty reduced from 5% to 0%. Track pants (HS 6103.42): Duty reduced from 5% to 0%. All knitted garments of cotton origin benefit from the preferential rate.
To claim the ECTA preferential duty rate, you need: a Certificate of Origin (Form ECTA) issued by the Export Inspection Council of India or the Textile Committee, a commercial invoice showing Indian origin, and a bill of lading or airway bill. The certificate of origin must be presented to Australian Border Force at the time of import.
For an Australian buyer importing $100,000 worth of t-shirts from India, the ECTA saves $5,000 in import duties compared to the MFN rate. This makes Indian t-shirts even more competitive against Chinese and Bangladeshi suppliers. Combined with the quality and certification advantages of Tirupur manufacturers, the ECTA makes India the preferred sourcing destination for Australian buyers in 2026.
The India-Australia ECTA is a significant advantage for Australian buyers sourcing from Tirupur. Esplandea Incorporation handles all export documentation including ECTA certificates of origin. Contact us for a free quote for your Australian market requirements.