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How to Export Terry Towels from India to USA Hotels

How to Export Terry Towels from India to USA Hotels

Introduction: The Booming Global Market for Terry Towels

India has long been known as the global powerhouse for textile exports, and terry towels are one of its most in-demand products—especially in the hospitality sector. As the United States continues to expand its hotel and tourism industry post-2024, the demand for high-quality, absorbent, and durable Indian terry towels is soaring.

USA hotels—ranging from budget chains to five-star luxury resorts—prefer Indian terry towels because of their superior cotton quality, cost-effectiveness, and long-lasting texture. In fact, according to data from India’s Textile Export Promotion Council, towel exports to the U.S. have seen a steady 8–10% annual growth in recent years.

If you’re planning to enter the lucrative U.S. hospitality supply chain, this guide will walk you through every step of how to export terry towels from India to USA hotels—from compliance and certification to packaging and buyer sourcing.


Understanding Terry Towels: Types and Quality Standards

What Are Terry Towels?

Terry towels are woven fabrics made from cotton with long loops that absorb water efficiently. These loops—called “pile”—make terry cloth soft, plush, and ideal for hotel use.

Common Types Used by USA Hotels

Hotels in the U.S. usually order towels in bulk under different categories:

  • Bath Towels – Used in guest bathrooms (most demanded type)
  • Hand Towels – For restrooms and spa facilities
  • Pool Towels – Larger, often made with extra-thick cotton
  • Gym and Spa Towels – Premium quality with embroidery options

Quality Standards Required by International Buyers

To succeed in exports, your towels must meet international textile standards such as:

  • OEKO-TEX Standard 100 – Ensures no harmful substances in fabrics.
  • ISO 9001 Certification – Confirms quality management systems.
  • GOTS (Global Organic Textile Standard) – Required for organic cotton towels.

Step 1: Conduct Market Research for Exporting Terry Towels

Before exporting, research is critical. Identify which U.S. hotel chains regularly import towels and understand their procurement cycles.
Major buyers include Hilton, Marriott, Hyatt, and Wyndham Hotels, which usually source through approved distributors or direct exporters.

You can use trade databases such as:

  • Import Genius
  • Panjiva
  • U.S. Import Data (CBP database)

Also, analyze competitor pricing on B2B platforms like Alibaba, IndiaMART, and TradeIndia to determine your FOB (Free on Board) rates.


Step 2: Ensure Your Terry Towels Meet U.S. Quality and Safety Standards

Key Certifications

USA buyers insist on globally recognized certifications:

  • OEKO-TEX Standard 100
  • GOTS Certification (for organic)
  • ISO 9001:2015

Testing and Inspection

Before shipment, send samples for lab testing to accredited labs like SGS or Bureau Veritas. Ensure colorfastness, water absorption, and fabric density meet buyer specifications.


Step 3: Register Your Export Business in India

You must obtain:

  • Import Export Code (IEC) from DGFT
  • GST Registration
  • Membership with Texprocil (Textile Export Promotion Council)

Having these ensures smoother customs clearance and access to government export incentives.


Step 4: Understand U.S. Import Regulations and Compliance

U.S. Customs and Border Protection (CBP) enforces strict regulations. Towels must include:

  • Fiber content and country of origin labels
  • Care instructions (e.g., “Machine Wash Cold”)
  • Compliance with the U.S. Federal Trade Commission (FTC) Textile Labeling Rules

Failure to comply may lead to shipment delays or rejection.


Step 5: Find and Connect with Buyers in USA Hotels

Networking is key. Attend international trade fairs like:

  • Heimtextil (Germany)
  • Texworld USA (New York)
  • India Tex Trends (New Delhi)

You can also connect directly via LinkedIn, Alibaba, and Global Sources. Building relationships with U.S.-based distributors can help secure long-term supply contracts.


Step 6: Pricing and Payment Terms for Terry Towel Exports

Export pricing typically includes:

  • Raw material cost
  • Labor
  • Packaging
  • Freight charges
  • Duties

Use payment methods like Letter of Credit (L/C) for safety or Telegraphic Transfer (TT) for speed. Always clarify Incoterms like FOB or CIF before finalizing contracts.


Step 7: Choose the Right Shipping and Logistics Partner

When exporting terry towels to the USA, choosing the right logistics partner can make or break your business. The textile export process involves strict timelines, compliance checks, and paperwork accuracy.

Sea Freight vs. Air Freight for Textile Exports

  • Sea Freight: Most cost-effective for bulk shipments. Transit time to U.S. ports like New York, Los Angeles, or Houston can range between 25–35 days.
  • Air Freight: Ideal for small or urgent shipments, though more expensive. Transit time is 5–7 days but can double the cost.

Selecting a Reliable Freight Forwarder

Work with DGFT-registered freight forwarders who can handle:

  • Customs clearance
  • Marine insurance
  • Export documentation
  • Port handling and delivery

Popular freight forwarders for textile exporters include DHL Global Forwarding, Maersk Logistics, and FedEx Trade Networks.


Step 8: Prepare Export Documentation

Accurate documentation ensures a smooth customs process and payment clearance.
Here’s a checklist of essential export documents for terry towels:

Document NamePurpose
Commercial InvoiceDetails goods sold and total cost
Packing ListDescribes packaging and contents
Bill of Lading (B/L)Proof of shipment
Certificate of OriginVerifies towels are made in India
Phytosanitary CertificateConfirms compliance with U.S. import standards
Inspection CertificateValidates product quality
Insurance CertificateCovers goods during transit
Export Declaration (Shipping Bill)Required by Indian Customs

💡 Pro Tip: Always ensure the HS Code 6302.60 (for terry towels) is mentioned on your invoice for smooth customs processing.


Step 9: Packaging, Labeling, and Branding for USA Market

The packaging of your towels speaks volumes about your brand quality—especially when selling to high-end hotels.

Eco-Friendly Packaging and Branding Trends

  • Use biodegradable or recyclable materials such as kraft paper or fabric wraps.
  • Hotels in the USA increasingly prefer sustainable and plastic-free packaging.
  • Add a QR code linking to your product catalog or sustainability policy.

Importance of Clear Fiber Content Labels

Your towel packaging must include:

  • Fiber content (e.g., 100% Cotton)
  • Country of origin (“Made in India”)
  • Washing instructions
  • Size and weight

Failure to comply with FTC labeling rules may result in heavy fines or import bans.


Step 10: Post-Shipment Procedures and Follow-Up

After shipping, stay proactive with post-export processes.

Tracking Shipment and Customs Clearance

Track your shipment using container numbers on platforms like:

  • MarineTraffic
  • Maersk Line Tracking
  • CMA CGM eBusiness

Once the goods reach the destination port, ensure all customs clearance documents are ready. Respond promptly to any CBP (Customs and Border Protection) queries.

Building Long-Term Buyer Relationships

After successful delivery, request buyer feedback and testimonials. Offer:

  • Bulk discounts for recurring orders
  • Private labeling options
  • Co-branding opportunities with hotel chains

Long-term relationships can lead to steady export contracts and referrals to other hotels.


Common Challenges in Exporting Terry Towels and How to Overcome Them

ChallengeSolution
Delayed PaymentsUse Letters of Credit (L/C) or trade insurance (e.g., ECGC India).
Quality ComplaintsMaintain strict QC checks and third-party inspections before shipment.
Customs DelaysEnsure complete documentation and compliance with U.S. import codes.
Competition from Other CountriesFocus on eco-friendly and organic towel products for niche markets.

Profit Margins and Cost Breakdown of Terry Towel Exports

Exporting terry towels can be a highly profitable venture when managed efficiently. On average, exporters earn between 15–30% net profit margins, depending on scale and buyer contracts.

Example Cost Breakdown for 1,000 Bath Towels (100% Cotton)

Expense CategoryApprox. Cost (INR)
Raw Material (Cotton Yarn)₹80,000
Manufacturing Cost₹30,000
Packaging and Labeling₹5,000
Freight and Insurance₹15,000
Export Duty/Documentation₹2,000
Total Cost₹132,000
Selling Price (FOB)₹160,000
Net Profit₹28,000 (≈21%)

Top 5 Indian Terry Towel Export Hubs

1. Solapur, Maharashtra

Known as the Towel City of India, Solapur produces millions of towels annually. Most exporters here supply to Walmart, Target, and U.S. hotel suppliers.

2. Coimbatore, Tamil Nadu

Renowned for premium cotton spinning mills, Coimbatore’s towels are favored for luxury hotels.

3. Ahmedabad, Gujarat

A hub for organic cotton towels with advanced dyeing and finishing facilities.

4. Panipat, Haryana

Panipat specializes in bulk production and is ideal for exporters seeking high-volume, low-cost options.

5. Karur, Tamil Nadu

Famous for home textiles, Karur is emerging as a sustainable towel export destination.


Tips for Scaling Your Towel Export Business to USA Hotels

  1. Build a Brand Identity – Create a consistent logo, tagline, and premium packaging.
  2. Offer Private Labeling – Allow hotels to use their own logo on your towels.
  3. Focus on Organic & Sustainable Textiles – These have higher profit margins and demand.
  4. Use Digital Marketing – Showcase your towels on platforms like Instagram, Alibaba, and your own B2B website.
  5. Get Government Support – Apply for schemes under MAI (Market Access Initiative) and RoDTEP for export benefits.

FAQs About Exporting Terry Towels from India to USA Hotels

Q1. What is the HS code for exporting terry towels?
A1. The HS code is 6302.60, used globally for terry toweling products.

Q2. Do I need an export license to send towels from India to the USA?
A2. Yes. You must obtain an Import Export Code (IEC) from DGFT before exporting.

Q3. How can I find USA hotel buyers for terry towels?
A3. Use trade fairs, B2B portals (Alibaba, Global Sources), or contact hotel procurement departments directly.

Q4. What certifications are essential for exporting towels to the USA?
A4. OEKO-TEX, GOTS, and ISO 9001 certifications are highly recommended.

Q5. How long does it take to ship towels from India to the USA?
A5. By sea freight, it usually takes 25–35 days; by air freight, around 5–7 days.

Q6. What profit margin can towel exporters expect?
A6. Generally, between 15–30%, depending on production scale and buyer contracts.


Conclusion: Turning Terry Towels into a Global Business Opportunity

Exporting terry towels from India to USA hotels is not just a trade—it’s a sustainable business opportunity. With India’s reputation for superior cotton quality and craftsmanship, exporters can tap into a growing market of eco-conscious hotel buyers in the U.S.

By following compliance guidelines, obtaining certifications, and maintaining consistent quality, you can build a profitable and reputable global towel export business.

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