Market research identifies the United States as a promising market for apparel exports. Clothing exports to the US have been touted as an extremely viable proposition as the marketplace is widespread and varied.
The export procedures to the US are not very complex. However; basic compliance to terms, conditions and regulations need strict adherence.
Key points to be aware of as a clothing exporter to the US
A few suggestions on the key points to be considered when exporting clothing to the US are given as under:
- Ensure that the terms and conditions match the US standards and the risk delivery and payment terms are agreed upon well in advance.
- Keep scope for modifications in labeling and safety measures as per the local regulations.
- Get a consensus on who pays for transportation during risk transfers.
- Always and only transact through registered customs broker.
- Try to secure full advance payment for large consignments.
Different rules for online and traditional sales
It is important to note that export rules pertaining to legal aspects, payment methods and sales tax / use tax differ for online and retail stores than those for traditional sales.
The usual practice has been that the seller bears the cost of transportation and risk unless stated otherwise and subject to mutual agreement.
Cost effective transportation
As reaffirmed through market research, transportation by sea is considered to be the most effective. This is especially true for gigantic consignments and huge orders. Supplying in bulk is always beneficial as it aids in cost minimization.
Advantages of engaging a customs broker
Market research shows that the single most advantage of engaging custom brokers is their ability to facilitate the customs clearing process. Some things to note about customs brokers:
- Customs Brokers are registered and licensed with the US Customs and Border Protection.
- They serve the role of a communicator between the exporter, importer, and the issuing agency.
- The Customs Brokers are allowed to contact or submit documents to other government agencies if such a need arises.
- During goods clearance, the customs brokers are expected to prepare all the necessary documents, customs duties, taxes, and fees.
- A textile broker can also facilitate various other procedures like preparing documentation for your shipment as also checking visa requirements for a customer.
- If the export value of apparels goes beyond 250USD, it becomes mandatory to engage a customs broker as per the export regulations in the USA
- The general tendency observed among customs broker is that they prefer to work independently and are usually available at a certain harbor or airport. Alternately a freight company too can arrange for a customs broker.
Need for a market entry strategy
In order to have to achieve increased sales, you might need to either build a competent market entry strategy in-house or engage an external service provider in empowering your market research plan.