Bangladesh is a major source of knitwear, woven garments, activewear and uniforms, and its factories are used to quoting FOB. Under FOB the factory prices the goods and loads them on board at the named port, and you take over from there. For a US brand that wants a clear price and control over freight and customs, it is the cleanest way to buy.
Step 1: Define the product clearly
Start with a tech pack: drawings, measurements, fabric, trims, labels and packing instructions. A clear tech pack lets every factory quote the same thing. See our guide to writing a tech pack.
Step 2: Request FOB quotes with the named port
Ask each supplier to quote on FOB terms with the port written next to the term. Chattogram (Chittagong) is the main sea port for garment exports, so a typical quote reads "FOB Chattogram". Ask what the unit price includes and whether samples are charged separately.
Step 3: Compare quotes on landed cost
Convert every quote into landed cost using freight, duty, broker fees and delivery. A low FOB price does not always mean the lowest landed cost. Our landed cost sheet guide walks through it.
Step 4: Check the factory
Ask for current compliance audits, certificates and references, and check that they are up to date. Our guide to factory compliance standards explains what to look for. A sourcing partner who visits the factory can verify what the paperwork says.
Step 5: Confirm duty before you commit
Apparel from Bangladesh is classified in the Harmonized Tariff Schedule like apparel from anywhere else, and duty depends on the fabric, the style and the trade measures in force at the time. Ask your customs broker to confirm the current rate for each style before you place the order, because rates and trade measures change.
If you sell to government or institutional customers, country-of-origin rules may limit where goods can be made. Read our guide to the Berry Amendment and the Trade Agreements Act before you choose a country.
Step 6: Set up your US import side
You will need an importer number, a customs bond and a licensed customs broker before the first shipment. Our guide to the customs broker and bond covers the set-up.
Step 7: Approve samples, produce and inspect
Approve pre-production samples against your tech pack, then check the finished goods against your written quality standard before they ship. Inspection before loading is much cheaper than fixing a problem after the goods have landed.
Step 8: Ship and clear
The factory delivers the goods on board at the named port and sends your forwarder and broker the shipping documents. Your broker files the Importer Security Filing before loading and the customs entry for the shipment, you pay duty and fees, and the goods are trucked to your warehouse.
Why a second source matters
Many brands that currently produce in China add Bangladesh as a second source to spread risk. FOB makes this easy, because quotes from both countries can be compared line by line. See our comparison of sourcing hubs.
Work with Dragon Charm
Dragon Charm manages garment production from New York across Bangladesh, China and Pakistan on FOB terms. If you want a quote for your style, get in touch. See also our page on Bangladesh clothing manufacturing.