African Growth and Opportunities Act - Effective October 1, 2000, the United States established a preferential program, the African Growth and Opportunities Act (AGOA), which grants duty-free and quota-free duty status for apparel products manufactured in certain Sub-Saharan Africa countries. As of January 1, 2010, Benin, Botswana, Burkina Faso, Cameroon, Cape Verde, Chad, Ethiopia, Gambia, Ghana, Kenya, Lesotho, Malawi, Mali, Mauritius, Mozambique, Namibia, Nigeria, Rwanda, Senegal, Sierra Leone, South Africa, Swaziland, Tanzania, Uganda and Zambia are the only Sub-Saharan Africa countries that are designated as eligible for these benefits.
The U.S. Central-America-Dominican Republic Free Trade Agreement (CAFTA) was implemented on a staggered basis, beginning with El Salvador on March 1, 2006. The agreement is now fully in force, with Costa Rica joining the other CAFTA Parties on January 1, 2009. All duties on textile and apparel products will be eliminated after 15 years.
Cubic Meter is the volume of the carton and the container used for shipping the cargo. This is used to determine the freight costs.
If the price is based on C&F (Cost and Freight), it means the seller is responsible for the cost of the goods and freight expenses to deliver the goods all the way to the buyer's designated port.
If the price is based on CIF (Cost Insurance Freight), it means the seller is responsible for the cost of the goods, insurance and freight expenses to deliver the goods all the way to the buyer's designated port.
Cut Make are the costs of cutting, sewing and finishing the garment, excluding costs of materials. Buyers will provide the materials which include the fabrics and trims, and the manufacturers only quote CM to the buyer to cut, sew and finish the garments.
Cut Make Trim is the costs of cutting, sewing and finishing the garment, including the costs of trims, namely threads and carton boxes. Buyers will provide all the other materials and the garment manufacturer only quotes CMT to the buyer to cut, sew and finish the garments, plus bears the costs of threads and carton boxes.
- Cost per minute-2
Total overhead cost (including the labour cost of running a manufacturing facility over a particular period of time), divided by the standard minutes produced during that time period.
If the price is based on Delivered Duty Paid (DDP) it means the seller is responsible for the cost of the goods, insurance, freight expenses, tariffs, duties, brokerage fees, customs clearance expenses and transportation to deliver the goods all the way to the buyer's designated warehouse. DDP must state the location of the warehouse which the goods are supposed to be exported to.
- Direct Labour
The labour cost which is directly attributable to the garment, involving cutting, sewing, finishing (pressing, trimming and packing).
Estimated Landed Cost (ELC) is the estimation of the total costs to land the goods in the country of import after paying the freight and duty rates and any other costs incurred prior to landing the goods.
The European Union (EU) is the result of a process of cooperation and integration of 28 member countries including Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom. The member countries may continue to change.
Face to Face (F/F) is a continuous spreading mode of fabric spreading, as the spreader moves up and down the table. With this method of spreading the face is up on one ply and down on the next ply as the spreader goes back and forth. Appropriate for symmetric, non directional fabrics and is the fastest method of spreading. Least costly.
Facing-One-Way (F/O/W) spreading is more expensive and time consuming because fabric must be cut at each end with the new end repositioned.
Full Container Load (FCL) refers to a cargo where the entire container is full with one shipper/customer’s cargo.
If the price is based on FOB (Free on Board), it means the seller is responsible for the cost of the goods and its delivery charges all the way to the goods being delivered on board the vessel leaving the designated city. Thus FOB must state the city where the vessel will depart.
Free on Board (FOB) means that the seller fulfills his obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that point on.
The transport of goods in bulk by truck, train, ship or aircraft.
Free Trade Agreements (FTAs) are the agreements between nations which allow for preferential access to the participating nations at either lowered tariffs or even duty free.
GSD refers to General Sewing Data. GSD Corporate Ltd is a UK company based in the North of England, traditionally the heartland of the UK garment and textile industry since 1976. GSD is a global market leader in supplying methods analysis and productivity improvement solutions to the sewn products sector. GSD is active in more than 62 countries and has more than 5,000 customers worldwide. There are also more than 12,000 formally licensed “GSD Practitioners” in the world today - It is truly a globally recognized qualification. GSD specialises in solutions for Time - Cost Benchmarking, Productivity Improvement and Social Compliance in Work Measurement. GSD solutions are used not only in the Product Development and Costing departments of global brands and retailers, but also in Industrial Engineering and Costing departments in the worldwide manufacturing sector, where the benefit of GSD is also seen in production planning, production management, human resources and sales departments. Productivity improvements in the factory environment have significant impact on internal costs, factory efficiency, profitability and competitive edge.
Generalized System of Preferences (GSP) is a scheme whereby a wide range of industrial and agricultural products originating in certain developing countries are given preferential access to the markets of the European Union as well as other developed markets like the USA, Japan etc.
Harmonized Tariff Schedule (HTS) is a primary source of information for codes used for classification of goods for determining the duty rates/tariffs applicable for importing into the USA.
Initial Mark Up (IMU) is the difference between cost price and selling price of a product. This difference must cover for operating expenses, markdowns and profit.
- Indirect Labour
Indirect Labor includes the cost incurred on managers, line supervisors, mechanics and office staff which is not attributable to a specific style or garment.
Loose Container Load (LCL) refers to a cargo load where one shipper’s/customer’s cargo is not sufficient to fill up a container. The consolidator will need to consolidate with another shipper’s/customer’s cargo to fill it up.
Landed Duty Paid (LDP) is the same as DDP (Delivery Duty Paid). LDP is a term often used by US buyers.
- Marker Efficiency
Marker Efficiency is the ratio of the area of pattern pieces placed on a marker against the total area of the marker expressed as a percentage.
- Marker Mode
Marker Mode is the manner in which the pattern pieces are placed on a marker. One way or Two way.
- Mini Marker
Mini Marker refers to an estimated marker that is reduced to 10 - 15% of its actual size using one size or all sizes. The deviation of the yardage from factory to factory depends on the drafts, sewing allowance and marker layout. The Mini Marker is often used for costing and fabric booking.
Methods-Time Measurement (MTM) is the most established of all Predetermined Motion-Time Systems (PMTS). The system was born in the USA and since its publication in 1948, it is now a worldwide phenomenon. It is widely used to standardise processes and time standards.
Methods-Time Measurement-1 (MTM-1) is a procedure which analyses manual operations into the Basic Motions required to perform it, and assigns to each motion a predetermined time standard. MTM-1 is used for Process activities with a high degree of repetition, short cycle processes which are required to be precise.
The MTM-2 (Methods-Time Measurement-2) was developed by constructing motion combinations from basic motions of MTM-1. It has a smaller number of distance ranges and fewer cases of control than MTM-1. Although the analysis can be made more quickly than MTM-1, accuracy and methods description are not as great. MTM-2 is suitable for work that is not highly repetitive and for elements that are not less than 1 minute long. The system consists of nine categories of manual motions. MTM-2 has 39 predetermined values that could be used and applied.
Nap-Either-Way (N/E/W) is when pattern pieces are placed in any direction as long as it is according to the grainline.
Nap-One-Way (N/O/W) has pattern pieces in only one direction, and is suitable for asymmetrical and directional fabrics.
Nap-Up-Down (N/U/D) has pattern pieces of one size in one direction and another size placed in the opposite direction.
The North American Free Trade Agreement (NAFTA) entered into effect for Canada and Mexico on January 1, 1994. All qualifying goods enter the US duty-free. In order to qualify for duty-free treatment under NAFTA, textile and apparel products must be NAFTA originating. This means the product is assembled in one of the three NAFTA countries, using raw materials produced in the NAFTA countries (the original yarn-forward standard), or entered under special Tariff Preference Levels (TPLs). NAFTA includes separate TPLs for Canada and Mexico, covering cotton, wool, and man-made fiber apparel, yarns, fabrics, and made-ups. These TPLs do not expire.
Overheads are the fixed costs incurred in running the factory in terms of manufacturing and, in the case of the buyer, the costs of running retail operations.
Predetermined Motion Time Systems (PMTS) examples are GSD, SewEasy and Pro-SMV.
Pro-SMV is a garment sewing data system used in the apparel industry.
- Production Marker
The Production Marker contains pattern pieces that have been approved for cutting. Merchandisers use production markers to order fabrics.
Standard Allowed Hour, a term interchangeable with SAM (Standard Allowed Minute) except that it is calculated in hours. Refer to SMV (Standard Minute Value).
Standard Allowed Minute (SAM) is a term interchangeable with SMV (Standard Minute Value). Refer to SMV.
- SAM or SMV
SAM (Standard Allowed Minute) is the time in minutes that it takes a worker to complete a specific operation or to produce a specific garment. It should cover the time taken to perform an operation at normal or standard pace, plus an allowance for relaxation and possible stoppages. It is also called Standard Minute Value (SMV).
SewEasy is a garment sewing data system used in Ready Made Garment (RMG) manufacturing, which is based on lean manufacturing concepts developed by Toyota, for the purpose of predetermined motion time system. SewEasy automates the preparatory work when sewing ready-made garments, in order to estimate the labor requirement. SewEasy Pvt. Ltd is a registered IT exporter in Sri Lanka.
SMV (Standard Minute Value) is the time in minutes that it takes a worker to complete a specific operation or to produce a specific garment. It should cover the time taken to perform the operation at a normal or standard pace, plus an allowance for relaxation and possible stoppages. It is also called Standard Allowed Minutes (SAM), or if computed in hours, it is known as Standard Allowed Hours (SAH).
- Spreading Mode
Spreading mode is the manner in which the fabric plies are laid out for cutting.
Tariff Preference Limits TPLs) are defined in the Free Trade agreements to determine under what conditions goods are eligible for duty-free import.
The Trans-Pacific Partnership (TPP), also called the Trans-Pacific Partnership Agreement, is a defunct proposed trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the United States signed on 4 February 2016, which was not ratified as required and did not take effect. After the United States withdrew its signature, the agreement could not enter into force. The remaining nations negotiated a new trade agreement called Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CTATPP), which incorporates most of the provisions of the TPP and which entered into force on 30 December 2018.
- Volumetric Weight
The volumetric weight of a shipment is a calculation that reflects the density of a package. A less dense item generally occupies more volume of space, in comparison to its actual weight. The volumetric or dimensional weight is calculated and compared with the actual weight of the shipment to ascertain which is greater; the higher weight is used to calculate the shipment cost.
- Wet and Dry Processing
Garments can undergo both wet and dry finishing processes to achieve the desired hand feel and look in the end product. An example of a dry process is brushing and an example of a wet process is dyeing.
Yardage Yield (YY) refers to the total marker area of the placed pattern pieces including the area not utilised (fabric wastage). The number of yards needed to lay out a complete pattern is called the 'Yield'. This term can be expressed in yards or metres.