Bangladesh is a developing nation that has earned her way to becoming the hottest apparel and textile sourcing destination in the planet. Being the 2nd largest clothing supplier and clothing manufacturer, there’s no doubt that a lot of new apparel buyers are trying their best to understand exactly how to import from Bangladesh into their countries. Well have no fear! Here is a checklist of the things to address before shipping your apparel from Bangladesh clothing manufacturers.
Make sure you define and have a mutual agreement with your clothing supplier on the following terms and details:
1. The Products
Define and check the quality, quantity, and purchase price of the apparel you purchase from Bangladesh or any other country (adjusted to currency fluctuations). Make sure they are up to the mark of what you expect.
[Quick tip: You can hire an inspection agency like Asiainspection to make sure of this.]
2. The Ports
The port of destination is the port where the products will reach and the port of origin is the port in Bangladesh where the apparels will be shipped from. Usually, this is the Chittagong Sea Port.
3. Mode of Delivery
If you’re shipping less than 5,000 units, you’re better off shipping via air freight. Even though it’s a bit expensive, you’ll receive your products in less than 3 business days anywhere in the planet. Otherwise, go for sea freight. It may take up to 21 days, depending on circumstances, but it is still much cheaper.
3. Shipping Terms
This might be complicated if you’re just starting out. But we’ve described below the most used terms for you to understand.
- FAS (Free Alongside Ship): The clothing manufacturer/supplier delivers the goods alongside the buyer’s vessel or loading area. After that point, the buyer is responsible for any risk of loss or damage.
- FOB (Free on board): This is when the clothing manufacturer/supplier bears all risk upto the port of origin that has been mutually agreed upon. After the supplier has loaded the goods on the freight and cleared for export, the supplier no longer bears the any responsibility for the apparel.
- CNF (Cost and Freight): The clothing manufacturer/supplier is paid the cost to have the products delivered to the destination port and is responsible for any risk or damage until that point.
- CIF (Cost, Insurance and Freight): This the same as CNF, except that insurance has been added on the shipment.
[Quick tip: If you’re a little unsure about the details, hire a shipping agent. They are experts in negotiating shipping terms and rates, customs clearance, storage, paperwork, and delivery]
4. Receiving the Shipment
A big challenge for any buyer is to have all the necessary paper documents ready to receive the shipment from their port. Therefore, we’ve listed the documents you need before your shipment arrives:
- Proforma invoice: A complete overview of all goods purchased, including the quantity and the price of the product in the currency of sale. This is provided by the apparel manufacturing unit you hire.
- Packing list: This lists on the cardboard boxes, the contents of the cartons. It is also provided by the apparel manufacturer.
- Certificates of Origin: This piece of document verifies that the apparels were manufactured in Bangladesh. Again, provided by the manufacturer.
- Inspection Report (optional): If you hired an inspection agency to inspect your apparel, they submitted a report to the port of origin. You need to have the same report while discharging your shipment.
- Bill of Lading: Describes all the apparel that was shipped. Given to you by the shipping agent, you need a copy at the port to receive your shipment.
- Airway Bill: Same as the bill of lading, except for air shipments. This is provided by your shipping agent.
- Letter of credit (optional): If you’re paying the factory via a letter of credit then it’s compulsory to have a copy of the letter while discharging your cargo. This is provided by your bank.
5. Import Customs Duty
This is a fee you should be well aware before conducting your order. Just Google HS code finder to find the HS code of the apparel you’re importing. Then go to your country’s tariff and customs website and search that HS code to find the percentage of the total value that will be taxed.
Luckily, Bangladesh enjoys ‘Least Developed Countries’ status. This means that you can export to most countries with a 0% tariff and no quota.
See if your country is on the LDC benefit list: Countries With Quota & Duty Free Access to Bangladesh Apparel Manufacturers.
Maintaining so many things can be very hectic and without the proper expertise and experience, you leave space for mistakes. Hire an expert agency that can provide an all-in-one solution to your apparel supply chain. There are few out there, but if you’re not sure of which one to go with, try out NewThread. Request a FREE price quote for your apparel requirements today!