Custom Clearance Documentation, otherwise known as Export Documentation, is an important part. Especially when you are working with overseas manufacturers, I will briefly outline the Customs clearance documentation process in this post. I hope this will help you understand the process and prepare yourself accordingly. Whether you have a streetwear fashion brand, an athleisure, or any other clothing brand, and you are producing overseas, you must understand this process. Knowing the process will make it easier for you to plan your collection and help you build your linesheet. As a tech pack designer, I provide design and tech pack services to many brands. And I come across this query quite often. So, in this post, I am trying to give as much information as possible based on my limited knowledge and experience.
How to Import Apparel into the USA from India: Custom Clearance Documentation Process
Importing apparel from India into the USA involves some steps. This helps brands understand compliance with various regulations related to imports. Here is a general guide to help you navigate the process. Understanding the process enables you to smoothen your brand. And you will not have to be confused. Working with vendors in India has been more accessible than ever before. There is some regulatory compliance when importing apparel from India into the USA. We’ve outlined the process in bullet points to help you create your brand more easily. Do like, subscribe, and promote this if you find this helpful article to your business. Keep records of all transactions, customs docs, and compliance info for at least five years.
Market Research and Product Selection for Tariffs and Duties
Start by conducting market research to identify specific apparel you want to produce. Select the products you wish to import, such as clothing, footwear, or accessories. Be specific about the product, material, and embellishment you want to import. It is also important to know which country produces those and has an advantage in them. You can do this by visiting those countries. Here are a few tips on how to find cheap flights.
Every product has its specific HS (Harmonization Code). The Harmonized System (HS) Code is an international index used to classify goods for customs purposes. The HS Code is used by U.S. Customs and all other members of the World Customs Organization (WCO). The HS Code are mentioned during the preparation of the Export Invoice. Determine the applicable tariffs and duties for your apparel products. The Harmonized System (HS) code will help classify your products and calculate these fees. For tariff information, you can check the U.S. International Trade Commission’s (USITC) website.
Legal Requirements
Register your business and get any necessary licenses and permits. You can check with your local government and CBP for specific rules. Get an EIN from the IRS if your company is outside the USA. Here, we are specific to brands and businesses in the USA that operate inside the USA. So, you need to get your brand registered, and if you want your brand name and logo to be exclusive, you can apply for a patent. It is always good to have your brand name and logo patented if you are thinking of building a brand and running the business for the long term.
Supplier Selection
Identify reliable suppliers in India. Establishing a good relationship with them is crucial for a smooth supply chain. This is especially important if your collection includes made-to-measure garments.
Quality Control and Compliance
Ensure that your apparel products follow U.S. regulations and standards. This includes product safety, labeling, and testing requirements. For example, a few prints, such as plastic prints, are prohibited in the USA. Certain apparel items must meet specific flammability standards outlined by the CPSC. The items that come under it are sleepwear and children’s clothing. There are many other specific regulations, so you must determine what may come before you plan your products. Hiring a QC Firm to check products before shipping to meet US standards is always advisable.
Shipping and Logistics
Choose a shipping method, such as air freight or sea freight. The choice will depend on the size and volume of your shipments. Calculate shipping costs, including customs duties and taxes. Also, it is crucial to box your goods properly. Because the shipping companies calculate the volumetric weight of the boxes. The volumetric Weight formula is (Length * Width * Height) / 5000. And whatever the outcome is, the KGs of your goods. Shipping companies charge based on this. They consider VW or AW based on whichever is more. So, calculating shipping costs from the beginning of garment production is impossible. Many buyers ask this question before they even start the production process. So, understand that till you pack your products, you cannot give your shipping cost.
Customs Clearance Documentation
Custom Documentation is an essential paper for both exporters and importers. If this is not correctly furnished, you may face many issues and have to pay a fine or penalty. In the worst case, you may face the problem of delay in delivery, and sometimes you may not even get your products. So, it would help if you gave me enough time to furnish the customs documents before shipping the goods. The primary custom documents are as follows. Export Documentation is a complex process and, therefore, needs to be furnished by an expert who should have a good understanding of custom documentation for specific products. In this case, it is apparel. The specific requirements can vary depending on the products and their value.
- Commercial Invoice
- Packing List
- Shippers Letter of Instruction ( SLI )
- Form SDF
- Annexure – I
- Annexure – II
- Appendix – III
- Appendix – IV
- Purchase Order from Buyer
- Certificate of Origin
- Airway Bill Furnished by Shipper
Keeping an extra copy with the manufacturer is always a good practice. Many custom clothing manufacturers do not get into exports because of this complex process of custom documentation.
Hire a Customs Broker
A customs broker is a licensed professional who helps with importing and exporting. They handle customs clearance, paperwork, taxes, compliance, coordination with authorities, and record keeping.
Import Declaration
You must file the required import declaration with CBP through the automated commercial environment (ACE) portal and pay any applicable duties and taxes.
Customs Clearance
Your goods will go through customs inspection. A customs broker can help navigate this process and ensure compliance.
It’s essential to stay updated on U.S. import regulations and any changes in trade policies. Additionally, consider consulting with a customs attorney or trade consultant to ensure full compliance with U.S. import laws and regulations. Importing goods can be complex, so seeking professional advice is often wise. As an experienced tech pack design service and manufacturing consultant, we believe in providing our clients with all possible and accurate information. If this post helps you, please share it with your contacts who want to work with technical designers and clothing manufacturers in India. Please help us spread the word by liking and helping us promote.