Used clothes that are sold for further processing are often sold in the form of bales. A bale is a compact clothes packaging weighing around a hundred pounds. Depending upon the type of clothes in a bale, it can contain as many as four hundred pieces of old clothes. Usually, bales consisting of clothes used by children have close to three to four hundred pieces. Whereas, bales with only adult wear have around a hundred to two hundred garments.
Understanding The Nuances Of Packaging For Export
Many retailers and exporters buy clothing bales for sale from wholesalers in the used clothes market. However, if you are packaging a bale of used clothes for export, you must be extra cautious as customs authorities are quite stringent about what they allow to be exported and what they do not.
Taking Care Of The Volume Of The Bale Of Clothes
A single piece of clothing item is light and easy to transport. But when you consider a bale of clothes, at least two hundred pieces of clothes are under consideration. Also, the tariff of export/ transport is directly proportional to the volume of the package. So as an exporter, it is vital that the package that you export is not very voluminous.
Some compressing machines can achieve a volume reduction of about thirty percent. Once the compression process is over, the used clothes are banded together to complete the process.
So, most of the used clothes that are to be packaged into a bale for export are compressed. Compressing the clothes reduces the overall volume of the bale and makes it cheaper and more convenient to export.
Declaring The Correct Duty Rate
Duties are a form of indirect tax that is levied on goods. It is called import and export duty, depending on whether the duty is imposed on the import or export of goods. Now, to make the maximum profit as an exporter, you must declare the right duty rates.
Most people do not distinguish between new and used clothes while declaring the duty rates.
However, there is a significant difference between the duties that are levied on old and new clothes. To make the maximum profit as an exporter you must be well acquainted with duty rates for old clothes and declare them correctly.
In some countries the duty on new clothes is around ten percent and that on old and used clothes is around five percent. So there is a five percentage point difference in the duty rates between old and new clothes.
Hence declaring the correct duty rate and filling up all the details in the export-related paperwork correctly is essential if you want to make long-term profits in your export business.
Being Meticulous With The Paperwork
The paperwork related to the export of products is quite extensive. You may be required to give details like weight, volume, place of origin on every item you wish to export. Thus, if you are exporting used clothes as it is (without packaging them into bales), you will have to do a lot of paperwork. But if you are exporting bales of used clothes, the paperwork will be done per bale and not per garment.
Being Meticulous About Sanitary And Phytosanitary Measures
Used clothes are notorious for carrying various disease-causing organisms like bacteria and viruses. Most customs authorities are extremely cautious when it comes to allowing the entry of germ-laden goods within their country. So when you send bales of used clothing for export, you must ensure they are free of disease-causing germs or potential allergens.
Getting The Right Kind Of Insurance
Having the right insurance coverage for the products that are to be exported is crucial. When you are exporting bales of clothes, the bales may be lost in transit. Moreover, if the bales of clothes are soiled, they may no longer be worth exporting.
Thus, you have to keep in mind both natural and man-made mishaps that may occur in the course of exporting bales of clothes. After assessing all the risks, you must take an insurance cover that comprehensively covers all the risks that a bale of used clothes may face during export.
Figuring Out The Most Feasible Mode Of Transport
Bales of clothes can be exported by air, sea, or land. However, depending on the destination and the distance from the home country, you must choose the most convenient mode of transport. Choosing the most convenient mode of transport ensures that the cost of export is minimal and the profits are maximum.
Exporting bales of used clothes can be a highly profitable business venture. However, there are certain things like sanitation, the weight of goods, and the right mode of transport that the exporter must keep in mind. Moreover, doing the paperwork correctly and getting the right type of insurance coverage is also essential to realize good profits over time.