MERCHANDISING
February 27, 2018
What is the garments order available?- TEXTILE FARM
TYPE OF ORDER
1.FOB[Free On Board] ORDER:
This is the export term of delivery and price quotation. The seller sends the goods for export for export and delivers them on board[ship]. The risk is passed from the seller to buyer when the goods ate loaded in the ship at the port of departure. The buyer pays the freight and the seller does not include the freight with his costing.
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| Free On Board Order |
02. FOA[Free On Air] ORDER:
The seller delivers the goods to the Air Carrier at the airport of departure. The buyer bears the risk for, that moment and pays air transport costs, the seller bears the cost of materials and making does not include air freight.
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| Free On Air Order |
03. C& F[Cost and Freight] ORDER:
In addition of FOB cost the seller pays the freight charge also delivers the goods on board [ship].
04. CLF[ Cost, Insurance, and Freight] ORDER: This is identical to the C&F term except that in addition, the seller insures [pay the insurance bill] the goods against loss and damage at his cost.
05. CIFC[Cost, Insurance, Freight, and Commission] ORDER:
In this order, the seller includes the cost of insurance, freight, and commission for local buying house in addition to FOB costing.
06.CMT[Cutting, Making, and Trimmings] ORDER:
In this case, the buyer fixes the rate of CMT with the factory. The seller only adds the Cost of Making and Trimmings but does not add the price of fabric with his costing. At the L/C, the buyer gives all money to factory returns to fabric collects only CMT money from bank balance money returns to fabric supplier. The ordering system is following the tailoring shop.
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| Cutting, Making, and Trimmings Order |
07. CM[Cost and Making] ORDER:
In this case, the buyer fixes the rate of CM only with the factory , so the seller does not include the price of fabric and trimmings with his costing, but at the L/C buyer gives all money to the factory. Factory collects only cm money from the bank and balance money returns to trimmings and fabric supplier.
08. T.T[Telephonic transfer] ORDER:
When order quantity is very small and need an urgent delivery, in that case, the buyer gives purchase Contract instead of L/C and send money to the seller bank by T. T. After getting money, the seller sends the goods to the buyer.
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| Telephonic ransfer Order |
09. SUBCONTRACT ORDER:
It is indirect order, the order is received by another factory and when it is not possible for that factory to complete the total production within the given time, and in that case, they share the order with other factories by giving subcontract. The subcontract Factory only gets the CM charge by local money from the Order Taker.
10. EXCHANGE ORDER:
In this case, the buyer does not pay any money against buying garments from Bangladesh, instead of the money they are giving us another goods or products, which is surplus In their country but we need it very much. Nowadays this type of business of order is very rare. They used L/C for doing this type of order.
11. CMC[Cutting, Making and Carton] ORDER: Like CMT order, the seller does not add the price of Fabrics and Trimmings with his or her costing but add the price of Carton with CM. This type of order is very rate also.
