Chapter 05:
Working with a customs broker (and the DDP shortcut):
Does a clothing manufacturer handle customs?
Short answer: a good one handles part of it on every order and can handle all of it if you ask.
Customs happens twice on every shipment.
- Export clearance happens in the factory’s country, before the goods leave. That’s the export declaration, the commercial invoice, the packing list, and the proof of origin.
- Import clearance happens in your country when the goods arrive. That’s the customs entry, the duty, the import VAT, and the fees.
On most orders, the factory handles export. You handle import, usually through a customs broker.
Which side lands on whom is set by the Incoterm on your quote. Here’s the split for the terms you’ll actually see:
| Incoterm |
Export clearance |
Main freight |
Import clearance & duty |
| EXW |
You |
You |
You |
| FOB |
Factory |
You |
You |
| CIF |
Factory |
Factory (to your port) |
You |
| DAP |
Factory |
Factory (to your door) |
You |
| DDP |
Factory |
Factory (to your door) |
Factory |
Simplified for apparel orders. Your quote and contract decide the final split, so get it in writing.
You can, in theory, clear customs yourself. Almost no growing brand should.
A customs broker (often bundled with your freight forwarder) is a licensed specialist who files your entry, classifies your goods, calculates duty, and gets your shipment released.
For a modest per-entry fee, they remove the part of importing that is most likely to go expensively wrong.
What does a broker actually do for you?
- Classifies your garments to the correct HTS/commodity/CN code and defends that classification if the border queries it.
- Files the customs entry in the destination’s electronic system and calculates the duty, taxes, and fees owed.
- Applies any preference you qualify for (DCTS, GSP+) so you don’t accidentally pay a rate you didn’t owe.
- Arranges the customs bond where one is required (in the US, effectively any commercial shipment worth $2,500+).
- Flags compliance requirements, labelling, fibre content, and any product rules before they become a hold at the port.
The importer of record and why it’s you:
Whoever is the importer of record (IOR) is legally responsible for the duty, the accuracy of the declaration, and any penalties.
On standard terms, when you import into your own country, the importer of record is you, even though the broker does the paperwork.
This is why “the factory said it was fine” is not a defense at your border. Know that you’re the IOR and you’ll take the documents seriously.
The one exception: DDP. Under DDP, the seller takes on import clearance.
So the factory, or a customs agent acting for it, normally becomes the importer of record and pays the duty. That duty is built into your quote.
One thing to check for the UK and EU: if the factory pays the import VAT, it’s inside your price, and you can’t reclaim it yourself.
Some VAT-registered brands agree with “DDP, VAT excluded” for that reason. Ask which one your quote is.
The shortcut: let the factory deliver duty-paid (DDP).
There’s one Incoterm that changes this entire conversation.
Under DDP (Delivered Duty Paid), the seller, the factory, handles export clearance, freight, and the destination duty and clearance and delivers to your door for one all-in price.
No customs account of your own, no surprise invoice, and no separate broker relationship to manage on your first orders.
DDP isn’t magic; someone still pays the duty, and it’s built into the quoted price, but it converts a variable, easy-to-miss cost into a single fixed number you can plan around.
For a brand doing its first few imports, that predictability is often worth more than shaving a few points off the FOB.
From our export desk · Sialkot
How does Gibben Clothing handle customs?
Yes, we handle customs. Here’s exactly what that covers.
- Export clearance on every order. We clear your goods out of Pakistan. That includes the export declaration, the commercial invoice, the packing list, and the proof of origin you need to claim 0% duty under UK DCTS or EU GSP+.
- Invoices that match your tech pack. We write the garment description and fiber content exactly as they appear on your tech pack. Every document carries the same numbers, so your goods classify cleanly at the border.
- Import clearance and duty on DDP orders. Choose DDP, and we handle your side too: the customs entry, the duty, and delivery to your door, for one all-in price. We currently ship DDP to the US / UK / EU, typically in door-to-door time by air.
- On FOB or CIF orders. We hand your forwarder or broker a complete, matching document set before the goods ship, so your import clearance is quick.
Not sure which term fits your order? Ask for both quotes and compare the all-in numbers. Get a quote.
Rule of thumb: If you understand your code and your volume is growing, build your own broker relationship; it’s cheaper at scale and gives you control.
If you’re on your first one to three orders and want zero border surprises, ask your factory for a DDP quote and compare the all-in numbers.