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Many factors have hindered the growth of both these countries as global fashion exporters. But let’s not just get into this discussion. The good news is things are getting better. Egypt is slowly recovering on the economic front after years of sociopolitical turmoil. Similarly, the looming terror threats in the neighboring countries of Jordan have also been curbed.

On top of that, the administrations in both countries are quite serious about their fashion sectors. For instance, the Egyptian government has vowed to increase its apparel/garment exports four times in the next six years. On the other hand, Jordanian authorities have taken several measures to make their fashion industry better compliant with international standards.

In short, it is the best time for Egyptian and Jordanian fashion enterprises to start thinking about apparel shipping to the overseas market. There are many potential markets that Middle Eastern garment manufacturers can choose as the target of their apparel and fashion shipping.

Fashion Shipping

In this piece, we are going to discuss why Jordanian and Egyptian fashion exporters should target the United States as the destination of their fashion shipments.

US-China Trade/Tariff War Is Going to Help Small Players

The US and China, two of the world’s largest economies and de facto superpowers are up against each other. Both countries are engaged in severe trade skirmishes with each other via tariff manipulations. China is the biggest exporter of apparel and fashion items to the US. More than 70% of the US garment/fashion imports are shipped from China. This humungous share is going to shrink shortly. The US will try its best to cut down on Chinese fashion imports by giving more opportunities to other Asian countries.

This situation offers a golden opportunity for Jordanian and Egyptian fashion manufacturers to build their capacity and reach out to US buyers. No other overseas market offers such a unique and lucrative fashion shipping prospect to the emerging fashion industry.

Low Manufacturing Expenses Increase the Chances of Success

So, why the US is persisting with China as its trading partner amid such strained economic relationships? The reason is pretty straightforward with a basic financial rationale, i.e., the low price of Chinese goods.  The Chinese apparel manufacturers offer quality fashion at a low price, which wipes out all the European competition.

The low manufacturing costs are also the reason why a handful of Asian countries have managed to take a share in US fashion imports. These countries can sell their imported goods at competitive prices without taking any hit on the profit.

Egypt and Jordan also have a working environment similar to other Asian fashion-exporting countries. The labor is cheap, and utilities and other overhead expenses are quite reasonable in both countries. This means fashion enterprises from both these MENA countries can work on the same model and offer their fashion goods at a competitive price.

They just need to make sure that their fashion shipping complies with the US fashion importing standards. By offering the complete package of competitive prices, quality, and compliance, any non-Chinese fashion importer can get its slice of the pie in the US market.

Working in a Niche Will Pay off

Many small-scale fashion enterprises refrain from going big and overseas because they only make a single fashion item. It is important to understand that offering a single type of commodity is not a business weakness anymore. It has now become a strength. There are many cases where a niche-based business is churning more profits than an enterprise offering a wide range of products/services.

The same rule now also applies to fashion businesses. The overseas fashion markets prefer to work with the experts of a niche. For instance, a US wholesaler is more likely to buy Jeans from an enterprise that only deals in denim products.

Even if you are making and selling different apparel items, it would be better if you reach out to the US market with a single item. There are many benefits of having a niche-based approach for your fashion shipping.

• Your business can get better visibility in the brimming, saturated US market
• You can keep your operational costs low by restricting your fashion shipping to a single item
• You will eventually earn the reputation of a specialist for a particular garment item that you ship. This goodwill is going to come in useful when you extend your fashion shipping to other countries.

Exporting to the US Is Pretty Easy

Many fashion enterprises, especially in Jordan, don’t give any thought to shipping their goods to the US because of the prevailing misunderstanding of importing business. For instance, many enterprises think that they have to register their business in the United States to establish a garment supply chain from Jordan. However, that’s not the case.

No Need to Have Any Official Footprint in the US for Fashion shipping

You don’t need to register your business or set up an office on US soil as long as you are working with an experienced Importer of Record. By booking their services, you can deliver your fashion shipping to the US from Egyptian and Jordanian ports with the least hassle. From payment of relevant tariffs to dealing with the CBP officials, a seasoned IOR will take care of every importation step on your behalf.

Lots of Destination Options for Fashion shipping

The United States is the third-largest country by land area and is vastly surrounded by the sea from the three sides. For an overseas fashion supplier entering the US market, it is imperative to select the right destination port for its fashion shipping to keep the logistical costs in check.

If you are working with a seasoned Importer of Record, you can choose from plenty of destinations for both sea freight and air freight. For instance, you can book your apparel shipments for five different seaports located on all three coastlines of the US (east, west, and gulf). You can ship to these ports with a transit time of up to 21 days.

Moreover, you get to choose four different destinations for your air freight, as well. By using air freight, you can have your fashion shipping completely processed within 72 hours.

To sum it all up, shipping fashion/garments out of Jordan and Egypt to the US is not an insurmountable task even if you head a small to medium-scale garment enterprise, given that you are working with an Importer of Record that has enough experience of overseeing the imports to the US ports.

Fashion Shipping Services Are there to Help You

There is no doubt that apparel shipping has its peculiarities. You can’t just ship them by stuffing them in a dry container without specified packaging. You don’t have to worry on that front either since some IORs are now also offering special fashion shipping services to exporters based in Jordan and Egypt.

For instance, if you make leather jackets in Jordan and your US buyer insists on getting the entire consignment on hangers, then there is no need to panic and make excuses to risk your contract. Rope in the IOR/shipping service that offers Garment on Hanger (GOH) shipping from Jordan to the US.

These companies have dedicated dry containers designed to accommodate apparel on hangers. You can book your apparel shipping in these containers to comply with the quality standards needed by your US clientele.

Similarly, you can devise your apparel shipment in garment boxes for items that are packed flat. It is always better to use garment boxes for overseas fashion shipping, even if it is not the requirement. It makes a good impression on your business that eventually translates into better retention rates in an overseas market.

Both Air and Sea Freight Are at Your Disposal for Fashion Shipping

As discussed in the earlier section, you can book both air and ocean freight for your fashion shipments. Having this choice will come in handy in managing your consignments in line with deadlines and a client’s location. For instance, if your client is located in Chicago, then it would be better to use air freight because it will directly deliver the consignment to the location. Otherwise, you have to book both sea and land freight for the consignment. This won’t just raise the shipping cost but will also increase the transit time.

The above discussion suggests that the stage is set for Egyptian and Jordanian fashion enterprises to scale their operations into the lucrative US market. If you would like to know the costs for fashion shipping and logistics, you can get a quote from our fashion experts in both Jordan and Egypt.

Read Our Related Article

• Importer Of Record IOR Service in Jordan

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When we look at imports and exports in their most basic sense, they appear pretty uncomplicated and simple. In logistics and shipping, the complexities of imports and exports can overwhelm newcomers.

EOR Exporter of Record and IOR Importer of Record services are there to help all such people who don’t want to deal with exports and imports on their own. Nevertheless, one must be aware of some of the elemental concepts of this domain.

For that matter, here we are going to discuss what third-party exports are. We’ll also cover how Exporter of Record (EOR) services can help.

What Is Third-Party Export?

A 3rd exporter occurs when an exporter handles shipments on behalf of another individual or entity.

Addresses of Both Entities Go into the Shipping Bill

The shipping bill needs to have the addresses of both the manufacturer and the third-party exporter (EOR in some cases). This legal compliance is more or less the same in the customs laws of every country.

3rd-Party Exporter Obtains the Export Order

This is the most important aspect of third-party export. He is responsible for obtaining export or purchase orders even when he doesn’t have any of the items listed in the order. After securing an export order from the foreign consignee, they place the local purchase order.

FIRC Goes in the Name of the Third-Party Exporter

A Foreign Inward Remittance Certificate (FIRC) is a legal document that shows that a certain individual or entity has received a remittance from outside the country. During third-party exports, the FIRC is furnished in the name of the said exporter (or EOR services) instead of the actual manufacturer/exporter of the shipment.

Third-Party Exporter and Manufacture Transact in Local Currency

Third-party exporters or EORs Exporter of Record and manufacturers usually deal in local currency.

EOR Services as Third-Party Exporters

Yes, EOR services can assume the role of a 3rd exporter. This usually happens when an exporting manufacturer doesn’t want to embroil in the intricacies and red-tapping of customs and other regulatory bodies that are associated with exports.

Deepen Your Knowledge and read:

• Benefits of Non-Resident IOR NRI Of Importers of Records
• Keys to Effective Collaboration with 3PL Providers

If you are looking for an entity that can procure an export order for you and can deal with all the phases of exportation, then get in touch with any experienced Exporter of Record (EOR) services. or you can connect with us so we can help you out.

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Moving into international exports can be a tough task for any small to medium-sized business. Most governments implement policies that impose strict restrictions on overseas goods, which can make trade prohibitively expensive or even impossible. In 2015, an approximate $1.3 trillion in potential foreign exports to the US was disqualified due to regulatory requirements.

Understanding and navigating these barriers is vital to ensure the success of your export enterprise. Here’s a brief rundown of some obstacles you can expect.

Tariffs

In basic terms, tariffs are a tax on imported goods; these are levied to limit the amount of foreign products in the market, thus they act as a form of protection for domestic suppliers.

Quotas

Similar to tariffs, quotas limit the amount of goods that can be exported into a country to reduce the competition faced by local businesses. In effect, these should increase employment and give struggling local industries a chance to grow.

Subsidies

By subsidizing, local production governments can provide domestic manufacturers with a competitive advantage that allows them to sell their goods at lower rates.

Voluntary Export Restraints (VER)

These are agreements between exporting and importing countries. Usually, these place a limit on the number of goods that can be shipped within a period. While these can provide an obstacle to trade, they do offer exporting businesses an opportunity to increase prices and gain revenue, especially if they’re shipping a unique product.

Burdensome Regulations

These are legal barriers erected to control the quality and safety of imported goods. They can include certification or testing requirements specific to foreign exporters, complicated customs procedures, and specific standards regulating pollution, manufacturing materials, and build quality.

Overcoming Trade Barriers

In an increasingly global world, tariffs are slowly becoming a thing of the past; as barriers to trade and investment lessen, transport costs reduce and new technologies enable a constant and easy flow of communication. More and more businesses are looking worldwide to source raw materials, components, services, and finished goods. However, it is still essential for your business to conduct diligent research to identify financial and non-financial obstacles that could severely affect the feasibility of your exports. These risks must be factored in at the planning stage so that they can be mitigated. Make sure that expected returns outweigh the costs of doing business with your chosen foreign market.

Strategies for Tariffs and Duties

One method many firms use to gain a foothold in attractive markets is establishing a local presence. You may establish an affiliate in the local country that can effectively act as a branch of your enterprise without facing any of the export restrictions. Alternatively, you may form a partnership with an already established business in industries where governments heavily control foreign interference.

Of course, various countries have different rules regarding foreign business presence, which may make it unfeasible to overcome tariffs. In these cases, compliance is the best way to go. Adjust prices before you enter a market and ensure you have all necessary licenses and certifications.

Work With an EOR

When faced with complex regulations and other non-tariff barriers, working with an EOR can offer expertise with local customs and procedures, drastically speeding up the clearance process. They will take care of any import details, obtain all necessary permits, and handle the payment of any relevant duties. They can also offer some logistical support helping to arrange warehousing and distribution facilities for your benefit.

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The success of one of the most rapidly growing regions of America can be linked to the fact that it has been able to successfully market its strengths in supply chain, to major logistics companies. The area has an extremely reliable workforce, well-developed infrastructure, and is a prime location. Therefore, in recent years, some of the biggest distributors (Target, Tractor Supply Company, HomeGoods), have been drawn to the region.

How To Hotspot Your Logistics

Workforce development

Any region that is a hotspot for logistics shares the common feature of having a skilled workforce. Consequently, with a significant portion of the US population approaching retirement, companies are increasingly targeting regions with a young and skilled pool of employees for expansion.

Taking the example of Southern Arizona, officials collaborated with the University of Arizona and Pima Community College to impart valuable business skill sets to students numbering in thousands. This makes promoting the area to companies easy for officials who are responsible for its economic development. A skilled workforce would be ready to work for the companies that would want to expand there.

Location

Any region that has access to the larger markets of the country immediately becomes an attractive location for logistics. Such is the case with Tuscon. Companies prefer establishing their distribution centers at such locations because they can conserve their resources to reach their customers. Logistics hotspots need to be near big metropolitan areas to appeal to large distribution chains and suppliers.

Arizona’s political, social, and business ties with Mexico, grant the region a sizeable advantage in terms of the access it permits to the Mexican market. This results in the creation of new business opportunities and an expanded reach for supply chain centers. This in turn promotes trade between Mexico and the US, and balances export and import levels.

Infrastructure

A functional and well-maintained infrastructure is necessary for any transportation and logistics company to be effective. One of the crucial factors responsible for transforming Southern Arizona into a hotspot for logistics was the Port of Tuscon, an intermodal rail system. It offers a range of transportation options via rail within the Southwest.

Tuscon’s proximity to deep water ports on the West Coast is attractive for companies that conduct business at a global level.

Highlighting assets

South Arizona has also successfully been able to focus on and develop the assets that enable logistics functionality. Infrastructure, workforce, and location are all strengths that the region has successfully leveraged.

Learn More about our Logistics Solutions

For more in-depth information, read 6 Tips To Save Costs When Importing or Exporting Goods

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Global Trade Management (GTM) optimizes the entire lifecycle of global trade, from order placement to logistics and final settlement. This is done to increase the efficiency of operations and subsequent cash flows. Companies that follow the philosophy of global trade as a cross-functional and system-spanning process can derive vast benefits from GTM practices. However, GTM practices involve crossing the traditional function-based silos within companies. As a result, companies may have to endure a period of poor performance that may span over years before they can fully derive the benefits of implementing GTM solutions.

Conventional GTM systems focus on enabling organizations to comply with innumerable rules that govern how products and components cross national boundaries. While trade compliance is still the primary focus, several GTM system vendors are expanding the capabilities of their solutions. For example, some systems feature an expanded concept of compliance that checks whether products were produced, packaged, and transported according to user-defined parameters.

Other systems are adding functionality that allows for the coordination of the tangible flow of goods, grants total visibility for products and inventory, checks if the specific materials are subject to preferential treatment under trade agreements, and facilitates the processes of settlement.

Key Components of the ideal GTM solution

GTM is challenging for many organizations because it requires enterprise-wide implementation. In today’s outsourced and decentralized business landscape, gathering the necessary expertise and resources for a global trade management program is difficult.

The success of a global trade management program lies in its comprehensiveness. The ideal global trade management program needs to accommodate sourcing, transportation, purchasing, compliance, sales, and expertise in accounting. Conduct and formally document a thorough analysis of an organization’s export and import procedures. The procedures that are documented will require each division to develop processes and procedures that revolve around the established goals. Only then will the organization be able to develop and implement a global trade management program that is comprehensive? We recommend reading Improve Domestic and Global Transportation With TMS

Goals for implementing GTM programs

The essential goals of any global trade management program have to include:

• Compliance according to the regulations set for each commodity
• Cost efficiency in the movement of all products
• High benchmarks for delivery on time
• Striving to meet all expectations of the customer

Moreover, every step has to be traceable and checked to enable providing flawless customer service.

Managing Change

Organizations need to develop partnerships with supply chain partners who are proactive. This is the basis on which change can be managed. Proactive partners will notify you of any changes in cost variables that could significantly affect your budget, or in compliance standards, geo-political setting, or the geo-economic setting that will disrupt the existing supply chain. Given today’s complex world, there is a multitude of variables that have the potential to affect your business. By extension, it becomes imperative for your supply chain partner to consistently analyze the necessary.

Learn More about our Global Trade Solutions

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The terms of the transaction that an international buyer and seller, have mutually agreed upon. After an understanding has been established, all the tasks, risks, and costs associated with the transaction, are assigned one by one to the buyer and seller respectively. The Incoterms also clarify the time, when the risk and costs being incurred by the seller, are assigned to the buyer.

The list of Incoterms is extensive. This article covers the most commonly used terms, most of which apply to all transport modes, though a few are specific to certain modes.

Incoterm EXW – Ex-Works or Ex-Warehouse

“Ex Works” means the seller delivers goods at their premises or another agreed location. The seller isn’t responsible for export clearance or arranging transport.

Incoterm FCA – Free Carrier

The term implies a third party designated as the “carrier”, who is selected by the buyer. The seller has to transport the goods to the carrier, at either the premises of the seller or a mutually agreed upon destination. Clarity is advised regarding the destination as once the delivery is complete, the risk is now borne by the buyer.

Incoterm CPT – Carriage Paid To

The terms are similar to FCA, but the seller also covers costs for transporting the goods to the agreed delivery location.

Incoterm CIP – Carriage And Insurance Paid To

The terms are like CPT, but the seller must also arrange insurance for the goods.

Incoterm DAT – Delivered At Terminal

In DAT, delivery is complete when the seller delivers the goods to a terminal, port, or storage space. The seller bears all risks during transport and unloading.

Incoterm DAP – Delivered At Place

The terms are the same as DAT, except that the delivery is completed once the goods have arrived at the agreed-upon destination. Unloading, in this case, is not the responsibility of the seller. The risks of transporting the goods are borne by the seller.

Read the Differences Between DAP and DAT

Incoterm DDP – Delivered Duty Paid

In DDP, delivery is complete when goods are cleared by customs and ready for unloading in the buyer’s country. The seller covers all risks and costs, including transport, export/import clearance, and customs formalities. continue reading the Meaning of the Incoterm DDP

Incoterm FAS – Free Alongside Ship

In FAS, delivery is considered complete when the seller has delivered the goods at the delivery vessel, which is selected by the buyer. Once the goods have been placed on the vessel, all associated risks are transferred to the buyer.

If you want to get more explanations about Incoterms, you can contact our commercial representative.

For more information, continue reading

• The New Incoterms 2020
• Commercial Transactions when importing
• DEQ Meaning

The post Understanding the Language of Incoterms appeared first on GCE Logistics.

Operating in a global marketplace puts you in competition with multinationals and local firms. To attract international customers, ensure your offerings are high-quality, diverse, and available at competitive rates with a simple purchasing process.

Exporting to new overseas markets can reduce systemic risk, expand market share, and lower costs. However, it also comes with financial risks, such as non-payment or delayed reimbursement. To counteract these risks, there are several payment mechanisms export firms may use.

Securing Your Payment on International Exports

Payment in Advance

This is perhaps the most secure method of conducting export operations. Instead of dedicating resources to debt collection, your firm can ensure payment by sending an advance receipt to your buyer. After approval, the buyer can pay by wire transfer, draft mail, or credit card. However, mailed checks can cause delays of 4-6 weeks, undermining the benefit of advance payment.

Buyers rarely use this method due to the risks it poses. The buyer can’t inspect the goods or confirm payment before they arrive. In such cases, sourcing locally might be better, potentially losing your competitive edge.

Letters of Credit

This method of payment offers security to both parties and is perhaps the most common mechanism for export payments. The importing party arranges for their bank to guarantee payment on their behalf, as long as they meet all contract terms. If the bank is reputable, this method ensures the buyer’s credibility. It also assures the buyer that they will receive the products they agreed to buy.

Documentary Drafts

In this situation a bank will serve as an intermediary on behalf of the exporter, coordinating the exchange process. The bank will hold the necessary ownership documentation entitling the buyer to take possession of the goods, only completing the transfer when the buyer has fulfilled their obligation as negotiated. The documentary draft, or bill of exchange, requires both the importer and the exporter to sign it, promising payment of a specified amount upon delivery by a certain date. The bill guarantees that payment will be made no matter what underlying disputes and negotiations take place. In this situation, the bank handles all collections, and the buyer makes payment directly to the bank, which hands over necessary titles once the transaction is completed. Explore further by checking out 5 Tips for New Importers and Exporters

Open Account

Where the exporter has strong assurances about the credibility of the buyer, and their ability to pay on time, they may ship goods without issuing any sort of negotiable instrument that states the buyer’s legal obligation to pay a certain amount at a certain date. Under this payment method ownership of the goods passes to the buyer before payment is made, subjecting exporters to the full risk of defaulted payment. Without any documentation or financial intermediaries involved, it can be very difficult to pursue payment claims in foreign countries. This method also poses significant financing risk, as few banks will be willing to finance a transaction where payment cannot be legally guaranteed.

However, if you carry out all necessary research on the importing party, and can prove a strong track record of payment and a good international reputation, then this method of payment can provide you with a vital advantage over competing companies both locally and internationally.

Continue reading this related article What are the Best Car Shipping Methods?

For more in-depth information, Learn more about some responsibilities of the following:

• Importer of Record Responsibilities
• Exporter of Record Responsibilities
• Global Expansion Risk

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Shipping cargo to Dubai (Shipping companies, Freight Forwarders, Documents, Time Frame, and More).

In the past years, Dubai has become a very important location, especially when we think of exports and imports. More and more goods are shipped every day between Dubai and the rest of the world.

Whether for business or pleasure, there is a growing need to ship items from or to Dubai.

Is important to know that there are some important things to keep in mind when you need to import or export something to/from Dubai, and that’s what we are going to clarify here.

1 – Find a reliable and experienced Freight Forwarder in the Middle East:

This company or person can help you with every detail needed and knows how international logistics happens in Dubai. The freight forwarder is not the shipping company. Learn More about the difference between a shipping company and a freight forwarder

2 – Make sure you have all the required documents:

• Original Bill of Lading copies
• Commercial Invoice
• Packing List
• Certificate of Origin
• Commercial invoice from the exporter addressed to the importer detailing total quantity, goods description, and total value for each item.
• Original certificate of origin approved by the chamber of commerce at the country of origin detailing the origin of goods.
• Detailed packing list as per weight, the method of packing, and HS code for each article contained in the shipment.
• Import permit from the competent agencies in the event of importing restricted goods or duty-exempted goods.

3 – Check the time frame:

The time frame of a shipment depends on a lot of factors (Shipping company, weather, how many stops the vessel makes along the way, etc) but it’s important to know the estimate. Your freight forwarder will accord this with the Shipping Company in Dubai and can inform you.

With those points covered, you should not have headaches to ship your goods from or to Dubai.

GCE is one of the most experienced Freight Forwarders in the Middle East and is taking care of many shipments from/to Dubai every day. Learn How IOR Service in Dubai can help.

Read More Related Articles:

• How To Choose a Freight Forwarder
• What Is Not Allowed in Customs in Dubai?

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