Basic Function of Commercial Department in Garment Industry

Md Mahedi Hasan

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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. 

Image: Commercial Department in the Garment Industry
Image: Commercial Department in the Garment Industry

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.

Image: Commercial Department in the Garment Industry
Image: Commercial Department in the Garment Industry

➤ 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)

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