What the Commercial Department Does

The commercial department is the engine room of a garment factory's import and export flow. It manages the supply chain for both raw materials and finished goods, working with banks, government authorities, and customs to keep orders moving and money flowing. Merchandising negotiates the order; commercial makes the trade actually happen. Here are its core responsibilities.

Core responsibilities

Area	What it covers
L/C management	Open, amend, negotiate L/Cs; run back-to-back L/Cs; settle export payments
Export documentation	Prepare export docs; comply with trade rules, customs, buyer requirements
Import documentation	Import docs for raw materials; clear goods; bonded-warehouse duty compliance
Trade compliance	Track laws/tariffs; renew licences (BOND, ERC, IRC, BIN, TIN, VAT); duty-free schemes (GSP, EBA); buyer schemes (BSCI, SEDEX, WRAP, C-TPAT)
Buyer/supplier liaison	Bridge buyers, suppliers, and internal teams on schedules, docs, terms
Banking & finance	Realise export proceeds; FX; packing credit and post-shipment finance
Shipping & logistics	Coordinate lines/forwarders; monitor schedules; handle insurance claims
Bonded warehouse	Duty-free import of raw materials; record-keeping; customs audits
Post-shipment	Chase payment; resolve document/payment discrepancies; keep records
Risk management	Mitigate FX, payment-default, and geopolitical risk; insure shipments