Textile import and export

How to Gain Textile Import and
Export Market Access
The process of textile import and export can be daunting and complex. There are
many factors to consider, including the cost, the need for a customs broker, and the
region you wish to work in. However, there are many ways to get started. This article
will outline some of the most important steps you should take. Once you have a firm
grasp of your business objectives, you can start generating leads and building a
strong network of clients.
Need for a customs broker
The main purpose of a customs broker is to make sure that shipments reach their
destination in a safe and timely manner. They also manage the customs clearance
process. Customs regulations and rules keep changing, so a broker’s services can
prevent costly delays, confiscation of goods, or other penalties. Brokers are legally
responsible for any customs declarations they prepare for you, so they must be
familiar with all the requirements of every type of import.
A customs broker can also help you prepare the right tariff classification and
customs valuation. He or she can also help you set up an importation infrastructure.
A customs broker with experience in the textile industry can ease the legal and
regulatory aspects of importing textiles. It’s also important to note that customs
brokers are not required by law, but many companies prefer them as they can help
prevent costly mistakes. Customs brokers are also well-versed in the Harmonized
A tariff Schedule (HTS), is a compilation of all the duties that apply to goods as they
enter a country.
Costs
Many businesses feel that importing from other countries is risky and expensive.
However, with strategic planning and detailed market analysis, textile importers can
identify potential buyers in foreign countries. With this knowledge, textile importers
can increase their production, focus on quality, and increase their demand for their
products. This approach helps break monopolies in the textile industry. Furthermore,
it creates a competitive advantage for local regional players, who are not forced to
close their domestic production facilities.
Some countries are heavily restricting textile imports, and this has put pressure on
U.S. textile producers. Other countries have implemented restrictions in the textile
and apparel industries, as well as in other industries. For example, in Japan, textile
imports are restricted in some form. This restriction is known as non-MFA bilateral
restraint agreements. Those agreements are meant to protect domestic textile
production from foreign competition. However, there are still barriers to entry, which
make it difficult for U.S. manufacturers to compete effectively in the global market.
Strategies
The textile industry is at a crossroads. The COVID-19 pandemic has disrupted the
global markets but has also opened up new sourcing opportunities. With the global
textile market stagnating and the perception of alternative sourcing growing, India now
has two choices. It can either continue to grow at a moderate pace or disrupt the
market by gaining a significant share in key categories. Breakthrough growth in
textiles exports will depend on three factors: expanding market access, optimizing
factor costs, and achieving a high degree of sustainability.
Increasing the speed of order-to-dispatch is a crucial competency for a global textile
player. Leading global players are proactively investing in technology to reduce
order-to-shelf lead time. They can shorten lead times by improving their
logistics and optimizing their production plans. In addition, India has a strong
position as an export hub of low-cost Asia but falls behind China in overall logistics
efficiency. To improve this, India is planning to invest $1.4 trillion in infrastructure
by 2025.
ASEAN region
In recent years, the ASEAN region has become a major player in textile import and
export. The developing countries in this region are fast emerging as global textile
powerhouses. If the current trend continues, the ASEAN nations will soon be the
global leaders in textiles, threatening the likes of China and India. However, the
ASEAN region needs to be better groomed. Listed below are the advantages of
ASEAN countries for textile import & export.
The Association of South East Asian Nations (ASEAN) includes Brunei Darussalam,
Cambodia, Indonesia, Laos, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
These countries are rapidly developing in the textile industry, making them an ideal
destination for importers and exporters. However, some countries in this region
have limited production capacities and lack infrastructure, which hinders cross-border collaboration.
China
If you want to make your textile products more competitive, you need to look into
ways to increase your exports to China. China is a world leader in textiles, and they
are a major supplier of fabric and finished garments to countries around the world. In
2018, China’s textile exports totaled over $50 billion U.S. dollars, making it the
world’s largest supplier of textile products. According to the China Chamber of
Commerce, China exports more than 37 percent of the total textile market.
The trade war between the US and China has impacted the textile industry in many
countries. With quota control lifted on January 1, 2002, China’s share in the market
increased from 5 percent to 70 percent in June 2004. The trade war also affected the
number of countries supplying clothing to China, decreasing their contribution from
95 percent to 30 percent. This has harmed leading suppliers in the U.S. and other
WTO members.
India
There are numerous challenges in the Indian apparel market that need to be
overcome if India is to gain greater market share. While India enjoys free trade
agreements with many South Asian countries, it has limited access to the biggest
consumption markets in the world. Specifically, India faces a high duty rate when
exporting apparel to Europe. This results in sub-competitive prices and low returns
for Indian exporters. Fortunately, there are several ways for Indian apparel exporters
to achieve greater success in the EU.
A major challenge is maintaining the production of cotton in the country, where the
annual yield of cotton has decreased by more than 50 kg per hectare in four of the
last six years. In order to counter this, India should promote the use of innovative
seed technologies to boost crop yields. In addition, India should position itself as a
textile hub in the region and make a conscious effort to promote its sustainable
textile industry. This will allow the country to differentiate itself amongst global
consumers and help it develop a thriving textile industry.