Commercial Activities in Garments Industry

The Commercial Department plays a significant role in ensuring the seamless processing of import and export in the garment industry. It is directly involved in managing the supply chain for raw materials and finished goods, collaborating with banks, government authorities, and customs offices to ensure smooth operations. Below are the key responsibilities of the Garments' Commercial department:


1. Letter of Credit (LC) Management
  • Open, amend, and negotiate Letters of Credit (LCs) as per buyer requirements.
  • Verify LC terms and conditions to ensure alignment with purchase orders and company policies.
  • Managing Back-to-Back Letters of Credit and coordinating with banks for trade finance.
  • Coordinate with banks for export payments, processing and LC settlements.
  • Handling banking transactions, payments, and financial reconciliations.
2. Export Documentation and Compliance
  • Prepare and manage all export-related documents.
  • Ensure compliance with international trade regulations, customs and buyer requirements.
  • Coordinate with customs authorities, freight forwarders, and shipping agents.
  • Ensuring compliance with customs and government regulations.
3. Import Documentation and Procurement
  • Handle import documentation for raw materials, and other supplies required for production.
  • Coordinate with suppliers, banks, and customs for the timely clearance of imported goods.
  • Ensure compliance with import regulations and tax/duty under bonded warehouse facilities.
4. Trade Compliance and Regulations
  • Stay updated on local and international trade laws, tariffs, and regulations.
  • Maintaining, updating, and renewing licenses (e.g., BOND, ERC, IRC, BIN, TIN, VAT, etc.).
  • Ensure adherence to trade agreements, such as GSP, EBA and other duty-free schemes.
  • Handle compliance required by international buyers (e.g., BSCI, SEDEX, WRAP, CTPAT).
5. Coordination with Buyers and Suppliers
  • Act as a bridge between buyers, suppliers, and internal departments (e.g., merchandising).
  • Communicate with buyers regarding shipment schedules, documentation, and payment terms.
  • Negotiate terms with suppliers for raw materials and other inputs.
6. Banking and Financial Transactions
  • Manage export proceeds and ensure timely realization of payments.
  • Handle foreign exchange transactions and maintain records of inward and outward remittances.
  • Coordinate with banks for trade financing, such as packing credit and post-shipment finance.
7. Shipping and Logistics Coordination
  • Coordinate with shipping lines, freight forwarders, and transport agencies for the timely delivery of goods.
  • Monitor shipment schedules and ensure on-time delivery to buyers.
  • Handle insurance claims for damaged or lost shipments, if necessary.
8. Bonded Warehouse Management
  • Manage the utilization of bonded warehouse facilities for duty-free import of raw materials.
  • Ensure proper record-keeping and reporting to customs authorities.
  • Conduct regular audits to comply with bonded warehouse regulations.
9. Post-Shipment Activities
  • Follow up with buyers and banks for the timely receipt of payments.
  • Handle discrepancies in documents or payments and resolve issues promptly.
  • Maintain records of all export and import transactions for audit and reporting purposes.
10. Government and Regulatory Liaison
  • Coordinating with various stakeholders including government authorities, Central Bank, customs officials, shipping lines, and buyer offices.
  • Stay updated on changes in trade policies, export incentives, and tax regulations.
11. Record Keeping and Reporting
  • Maintain accurate records of all commercial transactions, including export/import documents, LCs, and bank correspondences.
  • Prepare reports for management on commercial activities, export performance, and compliance status.
12. Risk Management
  • Identify and mitigate risks related to international trade, such as currency fluctuations, payment defaults, and geopolitical issues.
  • Ensure proper insurance coverage for shipments and raw materials.
13. Coordination with Other Departments
  • Work closely with the merchandising, production, and logistics to ensure timely execution of orders.
  • Provide commercial inputs during order confirmation and production planning.
14. Supply Chain and Operations Management
  • Monitoring import/export shipments to ensure timely delivery.
  • Resolving discrepancies in shipments, documentation, and quality issues.
15. Cost Management and Budgeting
  • Tracking trade-related expenses and negotiating costs for transportation and warehousing.
  • Working with finance to manage budgets and optimize operational costs.
16. Market Intelligence and Strategic Planning
  • Keeping abreast of changes in international trade policies, tariffs, and market trends.
  • Advising on commercial planning and strategies to enhance competitiveness.
By effectively managing these responsibilities, the garment commercial department ensures the seamless execution of export-import operations, compliance with regulations, and the overall profitability of the garment business.

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