The factory quote is FOB — the price of the garment at the port of loading. Your actual cost per unit includes freight, duty, VAT, brokerage and warehouse intake. Here is how to calculate each component accurately.
Most UK brands new to importing knitwear focus on the FOB price because it is the number the factory gives them. But FOB is the starting point, not the landed cost. Between the factory gate in Gaziantep and your UK warehouse shelf, several costs accumulate — and failing to account for them accurately distorts your margin calculations and can make apparently profitable sourcing decisions unviable in practice. This guide walks through each cost component, with realistic 2026 ranges for knitwear imported from Turkey to the UK under the UK–Türkiye Free Trade Agreement.
| Cost component | Who pays | Typical range (per unit) | Notes |
|---|---|---|---|
| FOB price | Buyer | Factory quote | Includes garment + packaging + loading to vessel |
| Freight (sea) | Buyer | £0.80–£2.50/unit | Depends on volume; FCL cheaper per unit than LCL |
| Import duty | Buyer | £0 with FTA EUR.1 | 0% under UK–Türkiye FTA (yarn-forward origin rule) |
| Import VAT (20%) | Buyer | Recoverable if VAT registered | Paid on (CIF value + duty); reclaimed on next VAT return |
| Customs brokerage | Buyer | £80–£250 per shipment | Fixed per shipment; amortises over unit count |
| UK port handling | Buyer | £0.20–£0.80/unit | Felixstowe/Tilbury terminal handling fees |
| UK inland delivery | Buyer | £0.30–£1.20/unit | Port to warehouse; included in many freight quotes |
| 3PL intake | Buyer | £0.30–£0.80/unit | Receiving, counting, shelving at fulfilment centre |
500 units × £22.00 FOB = £11,000. This is the amount on your commercial invoice — the value of the goods at the port of origin. Your customs broker and freight forwarder will use this figure as the basis for the other calculations.
A sea freight shipment of 500 jumpers (roughly 2–3 CBM / 150–200 kg) via LCL (groupage / shared container) Mersin to Felixstowe: approximately £500–£900 total, including origin charges. That is approximately £1.00–£1.80 per unit. A full FCL (full container) would reduce per-unit freight significantly but requires larger volumes.
Under the UK–Türkiye FTA, knitwear (HS Chapter 61) qualifying as Turkish origin (yarn-forward rule met) enters the UK at 0% duty. Without the EUR.1 Movement Certificate, the UK Global Tariff applies — typically 12% on garments. On £11,000 of FOB value, that is £1,320 saved. The EUR.1 is issued by the Turkish customs authority and must accompany your shipment documentation.
Import VAT is calculated on the CIF value (cost + insurance + freight): approximately (£11,000 + £700 freight + £150 insurance) × 20% = approximately £2,370. If your business is VAT-registered, this is fully recoverable on your next VAT return — it is a cash flow consideration, not a permanent cost. If your business is not VAT-registered (under £90k turnover), import VAT is a real cost to include in your calculations.
Customs clearance handled by a UK customs broker: approximately £120–£200 per shipment. On 500 units, that is £0.24–£0.40 per unit. Your broker will file the import declaration with HMRC, present the EUR.1 to claim the 0% rate, and handle any queries from Border Force. This is a necessary operational cost — without it, your goods will not clear customs.
FOB £22.00 + freight £1.40 + duty £0 + brokerage £0.30 + handling/delivery £0.60 + 3PL intake £0.50 = approximately £24.80 per unit landed. If VAT is irrecoverable, add £4.74 = £29.54. The difference between the FOB quote (£22) and the true landed cost (£24.80 excl. VAT) is about 13% — material for margin planning but not catastrophic with 0% duty.
| Scenario | Duty rate | Duty cost (500 × £22 FOB) | Landed cost/unit |
|---|---|---|---|
| Turkey with EUR.1 (FTA) | 0% | £0 | ~£24.80 |
| China (UK Global Tariff) | ~12% | ~£1,320 | ~£27.44 |
| Turkey without EUR.1 | ~12% | ~£1,320 | ~£27.44 |
| Portugal (EU, UK–EU TCA) | 0% (yarn-forward) | £0 | ~£24.80 (but FOB typically higher) |
The EUR.1 is not automatic — it must be applied for at Turkish customs before your shipment departs. If your factory omits it, you pay the standard UK Global Tariff. This is the most common costly mistake first-time importers from Turkey make: assuming the duty saving happens automatically without the paperwork.
Below approximately 12–15 CBM, LCL (Less than Container Load / groupage) is more cost-effective — you share a container with other shippers. Above that threshold, a dedicated FCL (Full Container Load — 20ft or 40ft) reduces per-unit freight cost significantly. First-time orders of 250–500 pieces will almost always be LCL. As your order volumes grow, the economics shift towards FCL.
Knitwear from Gaziantep moves to the port of Mersin (2–3 hours by road) for sea freight, or can move by road freight across Europe via Bulgaria/Romania to the Channel Tunnel or Dover. Road freight is faster (10–14 days vs 18–25 days sea) but typically costs 30–50% more per unit. For premium or urgent consignments, road may be justified. For standard commercial volumes, sea via Mersin to Felixstowe is the default UK routing.
Freight rates fluctuate seasonally. The September–November period (Q3/Q4 peak, aligned with AW retail shipping) sees significantly higher rates and longer booking lead times as shipping capacity tightens across all routes from Turkey to the UK. Plan your freight procurement — and your production calendar — to ship outside peak windows where your selling season allows. A July shipment for AW product is cheaper and more reliable than an October one.
Knitwear is typically shipped flat-folded in polybags, stacked in cartons. This is significantly more volume-efficient than hanging garments on rail. The volume per unit for folded knitwear ranges from approximately 0.003–0.006 CBM per piece depending on gauge and weight. Discuss packaging specification with your factory before production — polybag dimensions, fold specification, and carton pack quantities directly affect your freight rate calculation.
When we quote FOB, we also walk you through the full landed cost calculation for your specific order — volume, routing, EUR.1 availability and 3PL destination. No surprises between the quote and the invoice. Contact us with your spec and we'll give you a complete cost picture.
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