Used clothing, though not as grand as a clothing line, remains a popular import and export item worldwide. While some used clothing is donated, it's also common to resell second-hand clothes in various markets. Numerous business groups are involved in the trade of second-hand clothing. In the current global economic situation, where some countries are slowly recovering from economic slowdowns, the desire to save money has increased. This encourages people to buy used clothing, especially when faced with shrinking payrolls.

Import regulations for used clothing vary from one country to another. In the United States, when used clothing is imported for donation purposes or to be given to individuals, companies, or charitable organizations, it is subject to the rules and regulations set by Customs and Border Protection (CBP), just like any other apparel range.

However, when used clothing is imported for the purpose of sale, it is subject to the same duties, marking requirements, and entry regulations as new clothing. The duty on used clothing is calculated based on its value. If the used clothing is purchased from a second-hand store, the receipt can be used to determine its value. In the case of donated used clothing, the value is determined based on the cost of a similar used item.

According to U.S. law, under provision 6309 in the Harmonized Tariff Schedule (HTS), used clothing can enter the U.S. duty-free. However, used clothing shipments brought for commercial purposes are not eligible for provision 6309. This provision applies only if the clothing is visibly in poor condition, as it is assumed that the clothing will be used for non-apparel purposes.

Understanding the HTS can be complex, and misclassification of an item can lead to costly consequences. It's advisable to consult with an expert before determining the classification. Additionally, used clothing must bear a label indicating the country of origin. If the used clothing lacks proper labeling, labels with the required information must be attached before customs clearance. The used clothing must also meet flammability standards under the Flammable Fabrics Act. Clothing strictly intended for use as secondhand household textiles (such as rags or cleaning cloths) or marked to indicate they are secondhand may be exempt from marking requirements under the Textiles Fiber Products Identification Act.

The laws and rules pertaining to the import of usedclothing vary in different countries. In India, the shipment of used clothingimported by a unit must be accompanied by a certificate obtained from theexporter, in which details regarding disinfection and fumigation generated by alicensed agency from the state where the original clothes were manufacturedmust be stated. The Special Economic Zone (SEZ) Division, Government of India,has drafted guidelines to regulate functioning of used clothing units in SEZs.

Like the U.S.A., in India also if the informationregarding used clothing is wrongly declared, action as per laws formulated bythe Directorate General of Foreign Trade (DGFT) applies and action as per theForeign Trade (Development & Regulation) Act, 1992, is taken by thecompetent authority. As per the drafted guidelines, all imported consignmentsof used clothes are subject to 100 percent inspection at the premises of theunit by SEZ/Customs authorities.

Countries like Africa, Zambia are exporting used clothingfrom Europe and America. The European-made clothing, American sports jerseysand designer labels are offered at discount prices, thus turning second-handmarkets into a prime destination for cheap garments. There are some othercountries, where buying of used clothing is not very popular. Countriesincluding Poland, Philippines and Pakistan are not very keen on buying usedclothing for reasons that vary from social issues to risk to personal hygiene.Similar to these countries, India also refuses the import of second-handclothing, but accepts the import of wool fibres. Unused clothing is recycledinto fibres that are spun into yarn for reuse in 'new' used goods.

The import norms vary in different countries. Like inAngola, Bangladesh, Bolivia, Bulgaria, Cameroon import of used undergarments isprohibited. Similarly in Chile, Colombia, Costa Rica, Colombia, Egypt, Ghana,Greece, Kenya, Lebanon, Sri Lanka, Uganda, Pakistan, etc. the used clothingmust carry fumigation certificate at the time of import. In some third worldcountries like Ethiopia, fumigation certificate is not required, but priorapproval to specific duties is must.

The import duty rate for importing used clothing alsofluctuates. Import duty for importing used clothes into United Kingdom is 12percent and when the used clothing involves under clothes for women - coats andouterwear, the import VAT of 20 percent is also applicable. Apart from regularimport duty rates and VAT, there are also Most Favoured Nation rates, inArgentina, MFN (Most Favoured Nation) duty rate is 35 percent, in Australia itis 10 percent and sales tax 10 percent, in Austria MFN duty rate is 12 percentand sales tax is 20 percent. In Bahrain MFN duty is 5 percent, Bangladeshcharges 25 percent MFN duty and sales tax 15 percent and in China MFN duty is16 percent and sales tax is 17 percent.

 

Those who favour used clothing are often concerned aboutenvironment as well. On a larger scale, the corporate houses that are involvedin recycling of used clothes have become important contributors in a country's economy.The core for commercial sorting of used clothes are in South Asia, Canada,Belgium, the Netherlands and Hungary. The second hand trade has more thandoubled since 1991 following a rising demand in former Eastern Bloc and Africancountries.

In affluent western countries,used clothes occupy a niche market. In third world countries, second-hand clothingimported from the west, are chief source of clothing. The largest exporters ofused clothing are the U.S.A. followed by the U.K., Germany and the Netherlands.

The world's largest importers of used clothing are SubSaharan countries that import more than 25 percent of global second-handclothing. Some countries, like Philippines prohibit the import of secondhandclothes, in order to protect the local textile industry. Other counties likePakistan or Uganda, which have a flourishing textile industry, have no orlimited restrictions.

In these times of rapid change many countries arenavigating environmental as well as economic challenges. Importing andexporting used clothing, either for the purpose of recycling, charity or resaleis a wise choice. The world is redefining the concept of shopping through usedclothing.

References:

1.     Help.cbp.gov

2.     Dutycalculator.com

3.     Web.ita.doc.gov

4.     Wikipedia.com

Image Courtesy:

1.     Frommarkettomarket.com

2.     Ropausada-stocks.com

3.     Bongdy.com

 

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