The six steps and typical timelines
Ready stock skips steps 3 and 4: you approve photos of the actual lot and it ships once paid. Timings are typical ranges, not commitments; the proforma invoice gives your lead time.
| Step | What happens | Typical time |
|---|---|---|
| 1. Enquiry | You share products, quantities, spec or tech pack, and destination port | GoodBiz replies within 24 hours, Monday to Saturday |
| 2. Costing and proforma invoice | Price, Incoterm, payment terms and lead time are confirmed | Often a few days |
| 3. Sample approval | A sample is made to your spec and approved in writing | Commonly 1 to 3 weeks per round |
| 4. Production | Fabric is sourced to your GSM, then cut, sewn, finished and packed | Commonly 4 to 10 weeks, depending on fabric and quantity |
| 5. Inspection | Quantity, measurements, workmanship and packing are checked | Usually 1 to 2 days |
| 6. Shipment | Export clearance in India, then sea or air freight | Sea often 1 to 3 weeks to the Gulf and 3 to 6 weeks or more to Europe, the UK or North America; air usually under a week |
Export documents you receive
| Document | What it does and when you need it |
|---|---|
| Commercial invoice | Value, currency, Incoterm and HSN code per line. Every shipment |
| Packing list | Cartons, sizes, quantities, weights and dimensions. Every shipment |
| Ocean bill of lading | Receipt and contract of carriage. Only an original, negotiable bill of lading is a document of title, letting its holder claim the goods. Used with letters of credit and D/P |
| Sea waybill or telex release | The goods are released to the named consignee without original documents. Suits advance or open account payment |
| Air waybill | Receipt and contract of carriage for air freight. It is not negotiable and not a document of title |
| Certificate of origin | Needed to claim preferential duty under a trade agreement. A non-preferential certificate is issued when a buyer, bank or customs authority asks for proof of origin |
| Insurance certificate | When the seller insures, as under CIF or CIP |
| Inspection certificate or test report | When the contract, letter of credit or destination requires it |
The exporter also files a shipping bill, the Indian export declaration. Request any certificate of origin before the goods ship; it is applied for on DGFT's online platform.
Incoterms 2020 compared
An Incoterm sets who pays for transport, who clears customs and where risk passes. It does not set when ownership passes or how you pay. Write the rule, place and version, for example "FOB Chennai, Incoterms 2020".
| Term | Main freight paid by | Risk passes to buyer | Mode | Best for |
|---|---|---|---|---|
| EXW (Ex Works) | Buyer | Goods made available at the seller's premises, not loaded | Any | Buyers with an agent in India; the buyer must handle Indian export clearance |
| FCA (Free Carrier) | Buyer | Goods handed, export cleared, to the buyer's carrier at the named place | Any | Containers and air freight; ICC suggests FCA instead of FOB for containers |
| FOB (Free On Board) | Buyer | Goods on board the vessel at the port of shipment | Sea only | Sea freight; still common for containers |
| CFR (Cost and Freight) | Seller, to destination port | On board the vessel at the port of shipment | Sea only | Seller books sea freight, buyer insures |
| CIF (Cost, Insurance and Freight) | Seller, plus insurance | On board the vessel at the port of shipment, even though the seller pays freight and insurance to your port | Sea only | A price to your port; minimum cover is Institute Cargo Clauses (C) for 110 percent of the contract price |
| DAP (Delivered at Place) | Seller | At the named destination, ready for unloading | Any | Delivery to your premises; you clear import and pay duty |
| DDP (Delivered Duty Paid) | Seller, including duty and taxes | At the named destination, ready for unloading | Any | Rare for garments; the seller must clear customs in your country |
CPT and CIP are the any-mode versions of CFR and CIF; CIP requires broader Institute Cargo Clauses (A) cover. Incoterms 2020 also lets an FCA buyer have its carrier issue an on-board bill of lading for a letter of credit.
Payment terms
The payment term, stated on the proforma invoice, decides who carries the financial risk.
| Term | How it works | Risk to the buyer | Risk to the seller |
|---|---|---|---|
| Advance T/T | Bank transfer before shipment. Common practice for made to order is a deposit of 30 to 50 percent with the order and the balance before dispatch or against a copy of the bill of lading | High: you pay before receiving the goods | Low |
| Letter of credit at sight (UCP 600) | Your bank pays when documents complying with the credit are presented. Banks deal with documents, not goods | You pay on compliant documents even if the goods disappoint, so require an inspection certificate | Low if the documents comply; discrepancies can lose the bank's undertaking |
| D/P, documents against payment (URC 522) | Your bank releases the shipping documents when you pay | Moderate: you pay before inspecting | No bank guarantee; unpaid goods sit at the port. Gives control only with an original, negotiable bill of lading |
| D/A, documents against acceptance (URC 522) | You get the documents by accepting a bill of exchange payable later, such as at 60 or 90 days | Low | High: goods shipped on credit with no bank guarantee |
Confirm any change of bank details by phone before paying; email payment fraud is a real risk.
Inspection and AQL sampling
Most buyers inspect before paying the balance. The final random inspection is commonly done when production is complete and at least 80 percent is packed.
It usually samples under ISO 2859-1: the lot size and inspection level give a sample size, and defects found are compared with the acceptance number for the agreed acceptance quality limit (AQL). Common practice in apparel is general inspection level II with:
- Critical defects (safety, such as a broken needle in a garment): none accepted.
- Major defects (likely returns, such as a broken seam or a stain): AQL 2.5.
- Minor defects (such as an untrimmed thread): AQL 4.0.
Example: a 5,000 piece lot at level II gives a 200 piece sample. At AQL 2.5 it passes with up to 10 major defects and fails at 11; at AQL 4.0 it passes with up to 14 minor defects. ISO 2859-1 was revised in 2026, so name the edition, level and AQLs in your order.
Landed cost: a worked example
Landed cost = FOB value + international freight + insurance + import duty + other import charges, where import duty = duty rate × customs value.
The EU and the UK include freight and insurance to the border in the customs value; the USA leaves out international freight and insurance. Your broker confirms the basis and rate. The figures below are illustrative, not GoodBiz prices or freight quotes, and 12 percent is an example duty rate, not a real one.
| Item | EU or UK basis | US basis |
|---|---|---|
| FOB value, 5,000 pieces | 20,000 | 20,000 |
| Sea freight | 1,500 | 1,500 |
| Insurance | 100 | 100 |
| Customs value | 21,600 | 20,000 |
| Duty at an example 12 percent | 2,592 | 2,400 |
| Other charges (broker, terminal, delivery) | 900 | 900 |
| Landed cost | 25,092 | 24,900 |
| Per piece | 5.02 | 4.98 |
Import VAT or GST is left out, as registered businesses can often recover it.
How to check an Indian supplier
- IEC: Indian exporters need an Import Export Code from the Directorate General of Foreign Trade (DGFT). Check it with View Any IEC on the DGFT website.
- GSTIN: use Search Taxpayer on the GST portal. The legal name should match the invoice and the status should be active.
- RCMC: apparel exporters claiming Foreign Trade Policy benefits hold a Registration-cum-Membership Certificate from the Apparel Export Promotion Council (AEPC), now issued through DGFT's e-RCMC system. Ask for a copy and check the dates.
- Bank account: the name should match the IEC and GSTIN.
- Who makes the goods: ask whether production is in-house or through partner factories. GoodBiz works through partner garment factories in India and runs the spec, sampling, quality checks, labelling, documents and shipping itself.
HSN codes and market rules
Each line is declared with an 8 digit HSN code. The first 6 digits are shared internationally, so your broker can start from them, but your country's tariff sets the final code and rate. See HSN codes for garments.
- USA: fibre and care labelling, children's product rules, and an Importer Security Filing for ocean cargo 24 hours before loading.
- UK: fibre composition labelling.
- European Union: fibre labels in the local language and REACH chemical limits.
- UAE and GCC: CEPA preference with a certificate of origin.
- Africa: PVoC or SONCAP conformity in some markets.
- Australia: mandatory care labelling, and ECTA preference with a certificate of origin.
See all export markets. General guidance, not legal or customs advice.