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How toSourcing· 6 min read

FOB, CMT, MOQ, AQL: a plain-English garment sourcing glossary

By Santosh Rijal · Founder, Trishakti Apparel ·

Every industry protects itself with vocabulary, and garment sourcing is worse than most. Here is the whole dictionary a first-time buyer actually needs — each term in plain English, with links to our deeper guides where one exists. Bookmark it; quote it back at suppliers.

Pricing & shipping

TermPlain English
EXW (Ex Works)The price at the factory gate — all transport, export paperwork, and risk from there is yours.
FOB (Free On Board)Factory price plus getting the goods onto the ship at the port — the most common quote basis. For Nepal, typically FOB Kolkata.
CIFFOB plus the factory arranges (and bills you for) freight and insurance to your port.
CMT (Cut, Make, Trim)A price for labour only — you supply the fabric. If a quote looks impossibly low, it’s often secretly CMT.
Landed costThe real number: garment price + freight + duty + fees, delivered. Compare suppliers on this, never on FOB alone.
LCL / FCLLess than Container Load (you share a container) vs Full Container Load. LCL costs more per cubic metre.

Deeper: our Incoterms guide and what a hoodie actually costs.

Production & sampling

TermPlain English
MOQMinimum Order Quantity — the smallest run a factory will produce, usually per style and colour. Ours starts at 1,000.
Tech packThe document that defines your garment: measurements, fabric, construction, trims, placements. Better tech pack, better quote.
GSMGrams per square metre — fabric weight. A 180 gsm tee is a standard tee; 240 gsm is heavyweight.
Lab dipA small fabric sample dyed to match your colour, sent for approval before bulk dyeing. This is how your navy stays your navy.
Strike-offA test print/embroidery on the actual fabric, approved before bulk decoration.
PP samplePre-production sample — the final garment you sign off before the factory cuts bulk. Nothing should change after it.
Dye lotOne batch of dyed fabric. Colour can shift slightly between lots — good factories manage this; reorders should reference the approved standard.

Deeper: what a tech pack needs, GSM explained, and sample to bulk, step by step.

Quality control

TermPlain English
AQLAcceptable Quality Limit — the statistical sampling standard for inspections. AQL 2.5 is the common high-street level; stricter buyers use 1.0–1.5.
Inline inspectionChecking garments during production, when problems are still cheap to fix.
Final (pre-shipment) inspectionChecking finished, packed goods against an AQL before they ship — the last gate before your money moves.
Third-party inspectionAn independent firm inspects for you, typically a few hundred dollars a day — cheap insurance on a first order.

Deeper: our AQL and inspection guide.

Money & paperwork

TermPlain English
TTTelegraphic transfer — a bank wire. Standard structure: deposit upfront, balance against shipping documents.
LC (Letter of Credit)Your bank promises payment when the factory presents correct documents — safer for both sides on larger orders.
B/L (Bill of Lading)The document that controls the cargo. Whoever holds the original controls the goods — never released before payment terms are met.
CO (Certificate of Origin)Proof of where the garment was made — the paper that unlocks preferential (0%) duty rates.
REXThe EU’s registered-exporter system: the factory self-certifies origin on its invoice for duty-free EU entry.
HS codeThe global product classification number that decides your duty rate. Knit t-shirts are 6109; sweatshirts and hoodies 6110.
EORIThe registration number you need to import commercially into the UK or EU. Free, quick, one-time.

Deeper: paying a factory safely and how origin rules work.

Vocabulary is leverage. A buyer who asks for “FOB Kolkata, AQL 2.5 final inspection, lab dips before bulk” gets treated differently by every factory on earth — because those five words say you know how this works.

Something missing from this list? Ask us — and if you’re starting from zero, begin with the first-time importer’s guide.

Ready to make your line in Nepal?

Send us your designs, tech pack, or a reference — we’ll come back with MOQ, pricing, and lead time for your program.

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