Martintrux Dover was initially set up by a large group which included Fashion Distribution Ltd, so we have always had strong ties with the Rag Trade. Originally we imported expensive fashion from Italy and stock product from Yugoslavia whilst, of course, exporting top quality woollen and other exclusively British textile products.
Sadly, certain processing costs close to home have become prohibitive over the years for some markets, and Garment manufacturers often look further afield for processing in order to remain competitive.
In the 1990s Portugal and Romania became popular for their economy and skill base, but even they have succumbed to the joys of EU Membership and have seen their cost of operating increase – so today far flung outposts such as China, Morocco, Tunisia and the Ukraine have taken up the challenge.
As each ‘new’ manufacturing region has been ‘discovered’, Traders have been happy to find Martintrux Dover’s wide experience of the international textile business can assist them in identifying Customs implications and possible benefits or disadvantages for each suggested market and operation.
Martintrux Dover can advise which non-EU countries have preferential trading agreements with the EU for wholly produced Garments. We can offer valuable assistance in identifying which countries offer most benefit for CMT offshore operations, in terms of Customs Duty and VAT cash–flow. Calculations can be made in advance for infinite scenarios - ensuring the most cost effective outward processing is achieved, no matter the source of materials.
Martintrux Dover can prove which source of materials will offer the most cost effective supply, expressed as; transport costs and lead times versus eventual irrecoverable Duties.
Customs ‘Rules of Origin’ and ‘Rules for Preferential Duty Treatment’ are notoriously more complicated for trading Textiles and Textile Products than any other range of commodities. Martintrux Dover have built up expert knowledge to provide clients with long-term solutions to meet the demands and requirements of any Customs Authority concerned with import and export transactions. Our aim is to identify and take advantage of all legal avoidance and cash-flow benefits, for both Duty and VAT, for our clients - whilst remaining a key member of the supply-chain, by ensuring minimum clearance times through HMR&C controls are constantly achieved.
The cost of international transport has come down in real terms, and services have improved in leaps and bounds: With European and Turkish Fabric still desirable, and lead times an important factor, many manufacturers opt for ‘Offshore Production’. This involves either collecting materials locally and then shipping them outside the EU to specialist Cut-And-Make operations, or buying by order for direct delivery to such CMT units, for a quick turnaround and (re)import of the finished product. Customs refer to the procedure as Outward Processing, and there are several versions of Outward Processing Relief available – giving concessionary reductions of Duty or VAT, or both !
Additionally, items which attract EU Duty on arrival may be destined for final delivery to other EU Member States or outside the EU altogether. For such circumstances, further Customs benefits may be available: Duty and VAT Relief under ‘IPR’ Inward Processing – or simply VAT cash-flow benefits for ‘EU Onward Sales’.
Martintrux Dover is proud to boast IPR and OPR are our specialist subjects. We will be happy to discuss your needs.