Exporting Garment To Holland

[frumau]

Hi there guys,

Any Dutch here on this forum having any experience on exporting ready made suits to the Netherlands?

I am thinking of starting my own internet company to export good quality suits to Holland. As I understand you can get info on VAT tarrifs on certain sites/VAT office in BKK as well as at the dutch irs office.

But what I would like to know if anybody has done it before and how you experienced it.... What type of company is useful(Unlimited/other)? Are import taxes into the EU high? Was it easy to find a partner garment factory/store? Is the competition high? Etc?

Any stories or tips will be appreciated.

[LaoPo]

Hi there guys,

Any Dutch here on this forum having any experience on exporting ready made suits to the Netherlands?

I am thinking of starting my own internet company to export good quality suits to Holland. As I understand you can get info on VAT tarrifs on certain sites/VAT office in BKK as well as at the dutch irs office.

But what I would like to know if anybody has done it before and how you experienced it.... What type of company is useful(Unlimited/other)? Are import taxes into the EU high? Was it easy to find a partner garment factory/store? Is the competition high? Etc?

Any stories or tips will be appreciated.

<{POST_SNAPBACK}>

I think you'r much better off doing this kind of business in HK/China.

The quality of the material is much better there and also the workmanship.

For importduties: contact a freight-broker in Holland or Customs.

LaoPo

[Khutan]

Even Eastern Europe, a cousin of mine has a few shops in the UK and he gets all his stuff from somewhere in Eastern Europe, tells me he gets is at a huge saving.

Where is another thing - the clothing industry is secrative at best.

Good luck and PM me if you ever want jeans.

[frumau]

Thanks for the replies. I will stick to Thailand though cause I will move there with my Thai wife at the end of next year

[LaoPo]

Thanks for the replies. I will stick to Thailand though cause I will move there with my Thai wife at the end of next year

<{POST_SNAPBACK}>

OK, understood, but that doesn't prevent you from doing business in other Asian countries, does it?

The business you want to be in: 'ready made suits'....I feel you should contact some of the best tailorshops in BKK, mostly Indians/Pakistani or am I wrong?

LaoPo

[frumau]

That is true. I wouldn't prevent me from dealing with other asian countries. But Thailand/BKK. will be my main focus.

Ready made suits, yes that is correct. Although I might add tailor made ones with the help of a friend to do the measuring in Holland. And I will have to build up contacts with tailorshops. Any sugestions (-:

Jasper

Edited December 14, 2004 by frumau

[frumau]

Even Eastern Europe, a cousin of mine has a few shops in the UK and he gets all his stuff from somewhere in Eastern Europe, tells me he gets is at a huge saving.

Where is another thing - the clothing industry is secrative at best.

Good luck and PM me if you ever want jeans.

<{POST_SNAPBACK}>

Thanks Mattnich. I could use a little luck.

[LaoPo]

That is true. I wouldn't prevent me from dealing with other asian countries.  But Thailand/BKK. will be my main focus.

Ready made suits, yes that is correct.  And I will have to build up contacts with tailorshops. Any sugestions (-:

Jasper

<{POST_SNAPBACK}>

I'm Dutch myself. Did a lot of business in Th, but mainly HK/China etc. in a different (fashion)field.

I'm sorry I don't have any contacts at the moment in BKK

In BKK it's all about reliable contacts and supplier(s).

If I were you I would try to do research as much as possible, in BKK but also HK where in my opinion are the best suppliers and tailors as well as supply of the finest materials like wool, mixtures and cashmere for suits.

You might want to contact the HK trade council. It has an office in Amsterdam as well.

On the other hand I have a very good contact in China who has good knowledge of fashion and manufacturing as well. He's Swedish and one of my best friends. He has his own office and base in Southern China with own Chinese staff.

I could ask him if you're interested.

LaoPo

you can send me a PM if you wish

[frumau]

That is true. I wouldn't prevent me from dealing with other asian countries.  But Thailand/BKK. will be my main focus.

Ready made suits, yes that is correct.  And I will have to build up contacts with tailorshops. Any sugestions (-:

Jasper

<{POST_SNAPBACK}>

I'm Dutch myself. Did a lot of business in Th, but mainly HK/China etc. in a different (fashion)field.

I'm sorry I don't have any contacts at the moment in BKK

In BKK it's all about reliable contacts and supplier(s).

If I were you I would try to do research as much as possible, in BKK but also HK where in my opinion are the best suppliers and tailors as well as supply of the finest materials like wool, mixtures and cashmere for suits.

You might want to contact the HK trade council. It has an office in Amsterdam as well.

On the other hand I have a very good contact in China who has good knowledge of fashion and manufacturing as well. He's Swedish and one of my best friends. He has his own office and base in Southern China with own Chinese staff.

I could ask him if you're interested.

LaoPo

you can send me a PM if you wish

<{POST_SNAPBACK}>

Thanks again LaoPo. I will do some more research first. You can count on it. I am very enthousiastic, but I do need the some "reconnaisance" missions first. Nou doubt about it. I might just contact the HK office in Amsterdam like I will the Thai one.

Thanks for the offer to get in touch with your friend in southern China. I will PM you when I got things straightened out a bit more and decide that China should be included. I heard that textile/garment taxes to the EU are history so that makes it very interesting....

[frumau]

Hey one other question for you guys.

Is it true that transportation by air is a better option then by sea if you are transporting garment because it weights very little? And does it cost only a little more?

Greetz,

Jasper

[chuchok]

Hey one other question for you guys.

Is it true that transportation by air is a better option then by sea if you are transporting garment because it weights very little? And does it cost only a little more?

Greetz,

Jasper

<{POST_SNAPBACK}>

It's just a matter of doing the maths.Here's a cut and paste job for an example.

Density & Volumetric Conversion

Air Freight – Minimum Density

Airlines operate a charging structure that ensures they receive a minimum return for cargo space used. They do this by applying a minimum volumetric density ratio that is applied to any cargo that is light in density.

IATA member airlines and associates have set a space to weight ratio of 6 cubic metres volume for every tonne.

This converts to a minimum chargeable weight of 167kgs per m3 – which means:

If the goods being shipped weigh less than 167 kgs per m3, the chargeable weight is based on the space used – at a conversion rate of 167 kilos per cubic meter.

If the goods being shipped weight 167 kgs per m3 or more the chargeable weight is based on the actual (gross) weight of the freight.

The way to determine the chargeable weight of your airfreight cargo is to:

(1) Calculate the volume of the cargo, based on the freight dimensions:

L x W x H (in meters) = cubic meters

e.g. freight that measures 1.50 meters x 1 meter x 0.6 meter =

1.5 x 1.0 x 0.6 = 0.9 cubic meters

(2) Calculate the volumetric weight of the freight, based on the minimum density:

Volume in m3 x 167 = Volumetric weight (rounded up to nearest half kilo)

e.g. 0.9m3 x 167 = 150.3, therefore the volumetric weight is 150.5 kilos

(3) Determine if the chargeable weight will be based on the space used or the actual (gross) weight of the cargo:

The greater of the actual weight and the volumetric weight will be used as the chargeable weight

Example:

Your freight measures 1.80m x 1.20m x 1.00 and weights 120 kgs:

The freight volume is 2.16 m3 (1.80m x 1.20m x 1.00)

The volumetric weight is 361 kilos (2.16 x 167)

The chargeable weight is 361 kilos (i.e. 361 > 120)

Edited December 15, 2004 by chuchok

[frumau]

Hey one other question for you guys.

Is it true that transportation by air is a better option then by sea if you are transporting garment because it weights very little? And does it cost only a little more?

Greetz,

Jasper

<{POST_SNAPBACK}>

It's just a matter of doing the maths.Here's a cut and paste job for an example.

Density & Volumetric Conversion

Air Freight – Minimum Density

Airlines operate a charging structure that ensures they receive a minimum return for cargo space used. They do this by applying a minimum volumetric density ratio that is applied to any cargo that is light in density.

IATA member airlines and associates have set a space to weight ratio of 6 cubic metres volume for every tonne.

This converts to a minimum chargeable weight of 167kgs per m3 – which means:

If the goods being shipped weigh less than 167 kgs per m3, the chargeable weight is based on the space used – at a conversion rate of 167 kilos per cubic meter.

If the goods being shipped weight 167 kgs per m3 or more the chargeable weight is based on the actual (gross) weight of the freight.

The way to determine the chargeable weight of your airfreight cargo is to:

(1) Calculate the volume of the cargo, based on the freight dimensions:

L x W x H (in meters) = cubic meters

e.g. freight that measures 1.50 meters x 1 meter x 0.6 meter =

1.5 x 1.0 x 0.6 = 0.9 cubic meters

(2) Calculate the volumetric weight of the freight, based on the minimum density:

Volume in m3 x 167 = Volumetric weight (rounded up to nearest half kilo)

e.g. 0.9m3 x 167 = 150.3, therefore the volumetric weight is 150.5 kilos

(3) Determine if the chargeable weight will be based on the space used or the actual (gross) weight of the cargo:

The greater of the actual weight and the volumetric weight will be used as the chargeable weight

Example:

Your freight measures 1.80m x 1.20m x 1.00 and weights 120 kgs:

The freight volume is 2.16 m3 (1.80m x 1.20m x 1.00)

The volumetric weight is 361 kilos (2.16 x 167)

The chargeable weight is 361 kilos (i.e. 361 > 120)

<{POST_SNAPBACK}>

Thanks for this explanation Chuchok . This already tells me a lot about how airlines deal with size and weight when dealing with cargo. Very good to know that they deal with volumetric weight here. So sometimes even though your cargo weights less you pay for more because they start with a minimum load per space unit(m3).

What I am stil wondering about is the price differences/pros and cons between air transport and sea transport.......

[chuchok]

Hey one other question for you guys.

Is it true that transportation by air is a better option then by sea if you are transporting garment because it weights very little? And does it cost only a little more?

Greetz,

Jasper

<{POST_SNAPBACK}>

It's just a matter of doing the maths.Here's a cut and paste job for an example.

Density & Volumetric Conversion

Air Freight – Minimum Density

Airlines operate a charging structure that ensures they receive a minimum return for cargo space used. They do this by applying a minimum volumetric density ratio that is applied to any cargo that is light in density.

IATA member airlines and associates have set a space to weight ratio of 6 cubic metres volume for every tonne.

This converts to a minimum chargeable weight of 167kgs per m3 – which means:

If the goods being shipped weigh less than 167 kgs per m3, the chargeable weight is based on the space used – at a conversion rate of 167 kilos per cubic meter.

If the goods being shipped weight 167 kgs per m3 or more the chargeable weight is based on the actual (gross) weight of the freight.

The way to determine the chargeable weight of your airfreight cargo is to:

(1) Calculate the volume of the cargo, based on the freight dimensions:

L x W x H (in meters) = cubic meters

e.g. freight that measures 1.50 meters x 1 meter x 0.6 meter =

1.5 x 1.0 x 0.6 = 0.9 cubic meters

(2) Calculate the volumetric weight of the freight, based on the minimum density:

Volume in m3 x 167 = Volumetric weight (rounded up to nearest half kilo)

e.g. 0.9m3 x 167 = 150.3, therefore the volumetric weight is 150.5 kilos

(3) Determine if the chargeable weight will be based on the space used or the actual (gross) weight of the cargo:

The greater of the actual weight and the volumetric weight will be used as the chargeable weight

Example:

Your freight measures 1.80m x 1.20m x 1.00 and weights 120 kgs:

The freight volume is 2.16 m3 (1.80m x 1.20m x 1.00)

The volumetric weight is 361 kilos (2.16 x 167)

The chargeable weight is 361 kilos (i.e. 361 > 120)

<{POST_SNAPBACK}>

Thanks for this explanation Chuchok . This already tells me a lot about how airlines deal with size and weight when dealing with cargo. Very good to know that they deal with volumetric weight here. So sometimes even though your cargo weights less you pay for more because they start with a minimum load per space unit(m3).

What I am stil wondering about is the price differences/pros and cons between air transport and sea transport.......

<{POST_SNAPBACK}>

How long is a piece of string..

For price,the best way is to call a forwarder and compare shipments.

normally Air freight is much more expensive than sea freight, but is obviously much quicker.

Alot depends on say the value of a shipment and the differences between the actual costs. Sometimes airfreight can be much cheaper for smaller items, as they do not cover the sea freight minimum.

For example an Italian suit manufacturer might courier 300 suits on hangers to country "b" these suits could have a FOB value of say US$200 each and are delivered direct to his customer. The courier/air freight might cost him US$10 for each suit on a 2-3 day service or a total of US$3000

To sea freight these suits might cost say a total of US$350 or US$1.16 each.

In my experience, the Italian manufacturer probably goes for the Courier/air freight because of the delivery time as he dosn't want $60,000 worth of product on the water from 2-3 weeks before they are delivered, when for US$3000 he can have them in his customers store = he gets paid quicker.

Rough example,but you get my drift.

You have got to weigh up the variables and go from there.

[frumau]

Thanks Chuchok! I will remember this info and will put it to good use. When I get all the necessary info to start the small business and when I have settled down in Bkk I will go for it.