3.

Activities of Commercial Department

Commercial Department is one of the major part of any export oriented garments factory. This department basically handles the L/C related activities, shipment booking etc. The key responsibilities of a commercial department are following. 3.1. Responsibilities of Commercial Department:
aintain commercial activities of the organi!ation aintain paper and doc"ments related to banks, export, import etc.

#ork with master or mother L/C $pen and maintain back to back L/C. %hipment booking etc.

3.2 Documents needs to setup an export oriented garments factory:

Trade License. emorand"m of &rticle

Certificate of 'n(corporation T') *Tex 'dentification )"mber+ ,&T *,al"e &dded Tex+ '-C *'mport -egistration Certificate+ .-C *.xport -egistration Certificate+ ./0 *.xport /romotion 0"rea"+ Certificate 01 .&/02 .& Certificate 3ire License 3actory License

 3actory 'ns"rance 1ro"p 'ns"rance 0$' *0oard of 'nvestment+ /ermission *if applicable+ 0ond License .nvironmental Certificate 0ank acco"nt etc.

3.3 Purchase Order PO! "nalysis:

$nce b"yer confirm any order, they provide the man"fact"rer the below doc"ments. /"rchase $rder*/$+ Letter of Credit *L/C+

/"rchase $rder */$+ contain the below information. 0"yer name 0"yer address/contact/contact person /$ n"mber %tyle /article )o /$ sheet finali!ed date %tyle description $rder ratio/ si!e ratio /ayment terms %hipment terms

 %hipment date Labeling/Trims / accessories information %ample 'nformation $rder 4"antity

3.# Different $nternational Pricing Policy There are basically three processes for fixation of export prices which are following( 5. 3$0 *3ree on 0oard+ 6. C73 * Cost 7 3reight+ 8. C'3 *Cost, 'ns"rance and 3reight+ %O&: This terms means 9free on 0oard: The s"pplier is responsible for all the charges *incl"ding export licenses, export taxes, etc.+ and risks "ntil the goods have passed over the ship;s rail at the port of shipment< the merchandise m"st be cleared for export. The b"yer contracts and pays for the freight and bears all risks for loss or damage to the goods as soon as the merchandise passes the ship;s rail. The b"yer also pays for all import d"ties and clears the goods thro"gh c"stoms at the point of destination. C'%: C73 means 9Cost 7 3reight:. 'n this case ship or air freight is carried by the exporter. #hile 4"oting price, the exporter 4"otes price a bit higher then 3$0. The whole responsibility incl"ding the sending of goods to the selected port of the importer/b"yer is sho"lder by the exporter. 3reight may very from place to place and shippers to shippers.

C$%:

The seller;s price incl"des all charges, freight and ins"rance "p to the point where the ship carrying the goods arrives at the port of destination< the goods m"st be cleared for export by the seller. 3rom that point the b"yer has to bear all charges and risks, incl"ding "nloading costs. C73 = 'ns"rance > C'3 )ormally we can add 5(5.?@ ins"rance charge C73 price.

D"ring the fixation of 3$0 price following notes are to be followed caref"lly. Cost of fabric/Do!. 1arments *woven/ knit+ or cost of yarn /Do!*in case of sweater+ Cost of accessories/Do! garments. Cost of transportation from factory to sea port or air port. Clearing 7 forwarding cost. $ver head cost *banking, carriage etc+ Commission//rofit.

3.( Different Documentation: &ill of )ading &*)!: 't is a major doc"ment if the goods are dispatched by sea. The doc"ment representsA 5. & formal receipt for the goods 6. The evidence of the contract of carriage of the goods between the shipper of the goods and the shipping company. 8. The doc"ment of title to the goods & bill of lading may incl"de the following detailsA & description of the goods in general terms not inconsistent with that in the letter of Credit

'dentifying marks and n"mbers if any The name of the carrying vessel %ailing date. The ports of shipment and discharge The names of shipper, consignee name and address of third party if any. #hether freight has been paid in advance or is payable at destination. 1ross weight.

Certificate of Origin*country of Origin: 't is a certified doc"ment of a prod"ct which confirmed that the prod"ct is made in which co"ntry. 0"siness association provides this certificate. Pac+ing )ist: /acking typesA a+ %olid packing b+ &ssorted packing %olid color assorted si!e &ssort color solid si!e &ssort color assort si!e

/acking list contain below information. Date %tyle name /$ )o 1oods description

 %i!e/color wise ratio Total 4"antity 1ross weight )et weight etc.