Sourcing EGSourcing · Manufacturing · Export

Why the fabric has to be made in Egypt

Egypt is party to the Pan-Euro-Mediterranean convention, and the rule for apparel is double transformation: the fabric must be woven or knitted from yarn inside the zone, and the garment cut and sewn there too. Yarn may be imported — that is the starting point of the rule. Fabric may not. Cut-and-sew from imported fabric is a single transformation and does not earn EU preference.
What qualifies and what does not
RouteEU preference?
Imported yarn → woven/knitted in Egypt → cut & sewn in EgyptQualifies
Egyptian cotton → spun, woven and sewn in EgyptQualifies
Imported fabric → cut & sewn in EgyptDoes not qualify — one transformation only

Why this drives our product range

It is the reason we quote denim, jersey, twill and cotton outerwear and decline padded, membrane and technical outerwear. Those fabrics are imported, so the garment would lose EU preference and the buyer would pay full duty. We would rather publish the constraint than quote something that unravels at the border.

The United States: the QIZ rule

The US works differently. The QIZ protocol is a value-added rule rather than a yarn-forward one, so a programme can qualify for one market and not the other. Goods that meet it enter the United States duty-free. We source only from QIZ-certified factories.

What a QIZ garment needs. Source: U.S. International Trade Administration, QIZ Egypt (trade.gov/qiz-egypt), checked 2026-09-29.
ConditionRequirement
Where it is madeA registered facility in one of Egypt's six QIZs: Greater Cairo, Alexandria, Suez Canal, Central Delta, Beni Suef and Al Minya
Value addedAt least 35% of the product's appraised value when it enters the United States
Egyptian content11.7% of the value of materials, from the QIZ
Israeli content10.5% of the cost of materials
The remaining 12.8%From the Egyptian QIZ, Israel or the United States

QIZ documentation ships with every US order. See duty and landed cost.

This page explains the rules as they apply to our range. It is not customs advice. Confirm origin treatment for your specific product and bill of materials with your customs broker before you price it.