Custom Clearance Documentation otherwise known as Export Documentation is an important part. Especially when you are working with overseas manufacturers. In this post I will give a brief outline of Custom clearance documentation process. I hope this will help you understand the process in nutshell and prepare yourself accordingly. Weather you have a streetwear fashion brand or an athleisure or any other clothing brand, and you are producing overseas you need to understand this process. If you know the process it would be easier for you to plan your collection and help you build your linesheet. As a tech pack designer I provide design and tech pack service 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 as per my limited knowledge and experience.
How to Import Apparel in to the USA from India : Custom Clearance Documentation Process
Importing apparel into the USA from India involves some steps. This helps brands understand the compliance with various regulations related to import. Here is a general guide to help you navigate the process. Understanding the process helps you smoothen your brand. And you will not have to be in confusion. Working with vendors in India have been easier than never before. There are some regulatory compliance when importing apparel into the USA from India. 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 article useful 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 types of product you want to import, such as clothing, footwear, or accessories. And be specific to the product, material and embellishment that you want to import. 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 preparation of 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. You can check the U.S. International Trade Commission’s (USITC) website for tariff information.
Legal Requirements
Register your business and get any necessary licenses and permits. You can check with your local government and CBP for specific rules. If your business is outside the USA, get an EIN from the IRS. Here we are specific to Brands and Businesses located in USA and operating inside the USA. So, you just need to get your brand registered and if you want your brand name and logo to be exclusive you can apply for a patient for this. It is always good to have your brand name and logo patented if you are thinking of building a brand and run the business for long term.
Supplier Selection
Identify reliable suppliers in India. It’s crucial to establish a good relationship with them for a smooth supply chain.
Quality Control and Compliance
Ensure that your apparel products follow U.S. regulations and standards. This includes product safety, labelling, and testing requirements. For Example, there are few prints that are prohibited in the USA such as plastic prints. Certain apparel items, must meet specific flammability standards outlined by the CPSC. The items that come under it are sleepwear and children’s clothing. Like this there are many other specific regulations. So, you need to figure out 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 important to do proper boxing of your goods. Because the shipping companies calculate volumetric weight of the boxes. Volumetric Weight formula is (Length * Width * Height) / 5000. And whatever is 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 cost from the beginning of garment production is not possible. Many buyers ask this question before they even start the production process. So, understand that till you pack your products, you cannot give the costing your shipping cost.
Customs Clearance Documentation
Custom Documentation are important papers both for the exporters and Importers. If this is not properly furnished, you may face many issues and may have to pay fine or penalty. In worst case you may face the issue of delay in delivery and sometimes you may not even get your products. So, It is important that you give enough time to furnish the custom documents before shipping the goods. The main custom documents are as below. Export Documentation is a complex process and therefore needs to be furnished by an expert and should have 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
It is always a good practice to keep an extra copy with the Manufacturer. Many custom clothing manufacturers do not get in to exports because of this complex process of Custom Documentation.
Hire a Customs Broker
A customs broker is a licensed pro who helps with importing and exporting. They handle customs clearance, paperwork, taxes, compliance, coordinate with authorities, and keep records.
Import Declaration
File the required import declaration with CBP through the Automated Commercial Environment (ACE) portal. You will need to 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 a wise decision. As a professional tech pack design service and manufacturing consultant we believe in providing our client 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 in promotion.