Shipping can be the final frontier for clothing stores aiming to go global. As one of Myanmar's most significant export industries, textile and clothing represents a vital sector that has garnered attention on the international stage. With the increasing demand for Myanmar-made garments, it becomes imperative for clothing store owners to understand the nuances of international shipping. This guide will help you navigate the export process seamlessly.
Myanmar's booming clothing export
Clothing has consistently been at the helm of Myanmar's export success. For centuries, the country has been known for its distinctive textiles, with regions like Chin, Kachin, and Shan offering unique fabrics with distinctive weaves and patterns, as documented by The British Museum. However, it is only in recent decades, with the acceleration of online shopping, that the world has awakened to the potential of Myanmar as a global clothing hub.
Recent statistics have cemented this fact, showing a tremendous increase in the number of garments leaving Myanmar's shores. According to the Central Statistical Organisation under the Ministry of Planning and Finance, the export value of cut-make-pack (CMP) garments surged to over US$5.39 billion in the 2022-2023 financial year.
As more clothing stores and businesses look to tap into this lucrative market, partnering with the right clothing factory in Myanmar becomes crucial. Equally important is understanding the logistics, from choosing the most effective way to ship clothing and selecting the appropriate packaging method for clothes, to ensuring that garments meet international standards.
Navigating the complexities of international shipping
International shipping might appear daunting, but understanding its intricacies can simplify the process. Here's a detailed guide:
1. Duties and taxes
Always declare the accurate value of your clothing when shipping them internationally. Under-declaring or over-declaring can lead to unnecessary complications, financial penalties, or confiscation of goods. Proper declaration ensures smooth transit through customs checkpoints and guarantees the accurate calculation of taxes or duties.
Begin with familiarising yourself with the local export taxes: a 2% Advance Income Tax (AIT) is levied on the export value, which can be settled in either Myanmar Kyat (MMK) or the foreign currency. On top of that, most exported goods are subjected to an 8% commercial tax. It's also essential to note the Myanmar Customs Tariff 2022, which indicates tariffs ranging from 3% to 20%, depending on the type of apparel, be it yarn or woven fabric.
2. Prohibited and restricted clothing and materials
Every country has its list of prohibited and restricted materials. These restrictions can span from environmental concerns to cultural sensitivities. Ensure you're not exporting fabric or garments made of banned materials or designs.
For instance, Myanmar has specific regulations when it comes to exporting textiles and garments, influenced by its commitment to wildlife conservation and respect for cultural norms. While the global market might have a demand for exotic leathers, Myanmar stands firm on its stance against the exploitation of certain animals. The country prohibits the export of materials derived from elephants, horses, and other rare animals, as stipulated by the Ministy of Commerce.
3. Export documents required
Exploring the world of international trade involves understanding the documents that accompany every shipment of clothing. It's essential to appreciate their significance, as they are pivotal in ensuring a smooth shipping process, adherence to international regulations, and verification of the shipment's legitimacy. The shipping process requires several shipping documents:
- Commercial invoice: It provides comprehensive details about the transaction, making it easier for customs officials to assess the shipment and determine applicable duties and taxes.
- Packing list: Details of the content of your shipment.
- Certificate of origin: Verifies the origin of the goods. It is essential due to varying tariffs, trade agreements, and restrictions between countries. For instance, if you are shipping from Myanmar to the United States, you might benefit from certain free trade agreements if they are proven to be of Myanmar origin. The certificate of origin authenticates this claim.
- Export licence: Due to their nature or the destination country's regulations, some products require an export licence.
4. Packing non-fragile and fragile clothing
The art of packing is integral to the shipping process, particularly when you're sending goods across international borders. Clothing, though often perceived as non-fragile, can vary in its delicacy and susceptibility to damage. Here's how to ensure your apparel reaches its destination in impeccable condition.
