India is one of the world's established sources of cotton terry towels, and buyers in Europe, North America, the Gulf, Australia, and Africa import from it every day. If you are placing your first order, the process is more straightforward than it looks. This guide sets out the steps and the paperwork so you know what to expect.
The order process, step by step
- Enquiry and specification. You share the towel type, size, weight, composition, colour, branding, quantity, and destination.
- Quotation. The supplier quotes a price under a named Incoterm, such as FOB or CIF, with payment terms and a production timeline.
- Sampling. A sample is made to your specification. You test it and approve it in writing.
- Order confirmation. You issue a purchase order. The supplier issues a proforma invoice confirming the goods, price, and terms.
- Production. The towels are woven, finished, branded, and packed.
- Inspection. Goods are checked against the approved sample before they leave.
- Shipment. The supplier clears the goods for export in India and hands them to the carrier.
- Import clearance. Your customs broker clears the goods in your country and you take delivery.
The documents you will receive
For a typical sea shipment, the exporter provides:
- Commercial invoice: the seller's bill, showing the goods, quantity, price, and terms.
- Packing list: the contents, weight, and dimensions of each carton.
- Bill of lading: issued by the shipping line. It is the receipt for the goods and the document used to claim them. For air freight this is an air waybill.
- Certificate of origin: confirms the goods were made in India. It may be needed to claim a reduced duty rate where a trade agreement applies.
Depending on your country and your customer, you may also need test reports, an inspection certificate, or an insurance certificate. Ask your customs broker for the full list before you confirm the order, and pass it to your supplier.
The HS code for towels
Customs authorities classify goods using the Harmonized System. Cotton terry towels fall under heading 6302, which covers bed, table, toilet, and kitchen linen. Toilet and kitchen linen of cotton terry towelling is classified under subheading 6302.60. Your country adds further digits to this code, and the full code decides the duty you pay, so confirm it with your broker.
Duties and taxes
Import duty, VAT or sales tax, and any other charges are set by the importing country and change over time. Do not rely on a figure quoted informally. Ask your customs broker for the current rate for your exact product and origin, and include it in your landed-cost calculation.
Understanding the price you are quoted
The Incoterm in the quotation tells you what the price includes. Under FOB, the price covers the goods loaded on the vessel at the Indian port, and you arrange and pay the ocean freight. Under CIF, the price includes freight and insurance to your port. Compare quotations only when they are on the same term.
Payment
Payment terms are agreed between buyer and seller. Common arrangements in international trade include an advance payment with the balance against shipping documents, or a letter of credit issued by the buyer's bank. Choose terms both sides are comfortable with, and put them in the purchase order.
Calculating your landed cost
The price per towel is only part of the cost. Add:
- Ocean or air freight and insurance, if not included.
- Import duty and taxes.
- Port, handling, and customs broker charges.
- Inland transport to your warehouse.
Divide the total by the number of pieces to find your true cost per towel.
Practical tips for a first order
- Appoint a freight forwarder or customs broker before you order.
- Approve a physical sample, and keep it.
- Put the specification, price, terms, and delivery date in writing.
- Allow time for sampling, production, and transit when you plan your stock.
Mansa Exim International exports cotton and polycot terry towels from Belagavi, India, and handles export documentation and shipping for each order. View our product range or send an enquiry to begin.
