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Shirts and jackets in muted colours hanging on a chrome rail beside a dress form.
Getting garments made, the words

Garment trade terms

FOB, CMT, CM, LDP and DDP, with what each includes and who carries which risk.

Garment trade terms

The words a costing conversation turns on, in one line each.

Common garment trade terms, one line each.
TermWhat it means
HS 61 vs HS 62Chapter 61 is knitted or crocheted garments, chapter 62 is woven. Every trade statistic on our garments section is one of these two.
CMTCut, make, trim: the factory sews your fabric and trims. You own the material risk.
FOB (garments)The factory buys fabric and trims and delivers a finished garment to the port. Most export orders are quoted this way.
SAMStandard allowed minutes: the measured sewing time of a style. SAM times the labour rate is the core of a CM cost.
MOQMinimum order quantity, per style and often per colour. Driven by fabric minimums more than by sewing.
Lead timeFabric booking to ex-factory. Knits typically run shorter than wovens because fabric is made faster.
IncotermsEXW, FOB, CFR, CIF, DDP: who pays for and insures each leg. A CFR quote is not comparable to an FOB quote until you strip the freight.

Every word on this site, not only these, is in the glossary, and the fuller primer, the words a factory will use at you and what each one costs you, is folded under “the words” on the overview.

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