The function of a commercial department in the garment industry at a glance:
➤ RMG Order Sourcing (Direct from Foreigner/Local Liaison Office/Local Buying House) After detailed communication, costing, and sampling orders are confirmed with the merchandising department.
➤ Export LC is received by the commercial department through the buyer’s bank to the seller’s bank and the export process begins.
➤ Required raw materials and suppliers are selected by the merchandising department and PIs are collected for opening import LC to support export.
➤ Opening of Back-to-Back LC (up to 80% of the Master LC).
➤ Releasing Import Documents from the Bank to import materials against BBLC.
➤ Sending Documents to C&F agent for leasing imported raw materials against BBLC.
➤ Garment production starts.
➤ After completion of garments production and passing final inspection booking is to be made with the shipping line
➤ Sending garments to the particular depot for shipment
➤ Customs formalities.
➤ Receiving all shipping documents.
➤ Obtaining GSP and maintaining all formalities to obtain.
➤ Preparing export documents in line with Export LC.
➤ Pre-shipment Inspection & Certificate.
➤ Sending the documents through the negotiating bank.
➤ Waiting for payment.
➤ Proceeds realization.
➤ Payment of import bills.
➤ Claiming Duty Back for export using imported raw materials/claiming incentives for export using local raw materials
➤ Audit facing (remained prepared for a yearly customs audit, the commercial has to maintain all export-related papers and records systematically, has to prepare export import statement as per customs format, has to obtain PRC from Bank, after the presentation of satisfactory audit report bond commissioner passes the audit report and renew the bond license)
Mahedi Hasan, is a Textile Engineer, as well as a Top Rated content writer at Upwork, Level 02 Seller at Fiverr, Level 02 Publisher at Ezoic. A passionate textile ad fashion content writer, fashion SEO expert, and fashion web designer. Having a B.Sc. in Textile Engineering Degree from Textile Engineering College, Noakhali (TECN). Department is Apparel Engineering. Highly Experienced fashion writer for the last 3+ years. Have extensive 7 years of experience on wholesale clothing business.