How to Export Terry Towels from India to USA

Introduction – The Global Market for Terry Towels

The global demand for Terry Towels has surged in recent years, fueled by the growing hospitality, healthcare, and retail sectors. Terry Towels—known for their soft texture and high absorbency—are a staple in households and hotels across the United States, making them a top textile import.

India, being one of the largest textile-producing countries, holds a dominant position in towel manufacturing. With advanced weaving technologies, skilled labor, and cost-effective production, exporting Terry Towels from India to the USA presents a golden business opportunity for entrepreneurs and manufacturers alike.

Understanding the Terry Towel Export Business

Terry Towels are woven fabrics made from cotton or blended yarns with loops that increase absorbency. Their versatility makes them essential in bathrooms, spas, gyms, and kitchens. Exporting them is profitable because of consistent demand, stable pricing, and relatively low competition compared to other textile categories.

Why Choose Terry Towels for Export?

1. High Global Demand: The U.S. imports billions of dollars worth of towels annually.
2. Sustainable Material Options: Eco-friendly cotton towels appeal to environmentally conscious buyers.
3. Scalable Business: Small and medium enterprises can easily enter the export market.
4. High Profit Margins: Competitive manufacturing costs in India ensure healthy profits.

India’s Position in the Global Terry Towel Market

India ranks among the top three exporters of Terry Towels globally, alongside China and Turkey. Major production hubs include Solapur (Maharashtra), Karur (Tamil Nadu), and Ahmedabad (Gujarat). Indian exporters are known for producing high-quality, eco-friendly, and competitively priced towels for the global market.

Key Indian Manufacturers & Export Hubs

U.S. Market Demand and Import Regulations

The U.S. imports Terry Towels primarily from India, China, and Pakistan. To enter this market, exporters must comply with U.S. Customs and Border Protection (CBP) and Federal Trade Commission (FTC) textile labeling laws.

Understanding HS Code and Tariff Classifications

The Harmonized System (HS) Code for Terry Towels is 6302.60 – Towels made of cotton.
Tariff rates typically range between 6.7% to 9.1%, depending on product type and material.

Step-by-Step Process to Export Terry Towels from India to USA

Step 1 – Business Registration and IEC Code

Every exporter must obtain an Import Export Code (IEC) from the Directorate General of Foreign Trade (DGFT). This is mandatory for customs clearance and payment transfers.

Step 2 – Product Sourcing and Quality Control

Partner with reputed towel manufacturers who comply with ISO 9001 and Oeko-Tex standards. Quality control inspections ensure product consistency and avoid shipment rejections.

Step 3 – Packaging, Labeling, and Branding

Use eco-friendly, moisture-proof packaging. U.S. law requires textile labels mentioning fiber content, country of origin, and care instructions.

Step 4 – Documentation and Compliance

Essential documents include:

• Commercial Invoice
• Packing List
• Bill of Lading
• Certificate of Origin
• Export Declaration (Shipping Bill)

Step 5 – Shipping and Logistics

Choose between FOB (Free on Board) or CIF (Cost, Insurance, and Freight) terms. Major ports include Nhava Sheva (Mumbai) and Chennai. Use reliable freight forwarders for smoother delivery.

Step 6 – Customs Clearance and Duties

In the U.S., goods undergo CBP inspections. Import duties depend on classification under the HTSUS (Harmonized Tariff Schedule of the U.S.).

Quality Standards and Certifications for Terry Towels

To build trust with U.S. buyers, ensure products meet:

• Oeko-Tex Standard 100 – Chemical-free textiles.
• GOTS (Global Organic Textile Standard) – Organic cotton certification.
• ISO 9001/14001 – Quality management and environmental compliance.

Pricing, Profit Margins, and Payment Terms

Pricing depends on cotton quality, GSM, and towel type.

• Average FOB India price: $1.50–$3.50 per piece.
• Profit margin: 20%–35%.
• Secure payments using Letter of Credit (LC) or Telegraphic Transfer (TT) to reduce risk.

Marketing and Finding U.S. Buyers for Terry Towels

You can reach U.S. buyers through trade fairs, digital platforms, or direct marketing.
Prominent platforms:

• Alibaba, IndiaMART, TradeIndia
• Amazon Business and GlobalSources

Using Online Marketplaces for Export Growth

Register as a verified supplier and showcase certified products with clear specifications, samples, and competitive pricing.

Challenges in Exporting Terry Towels to USA

Common obstacles include:

• Complex customs documentation
• Stringent quality requirements
• Currency fluctuations
• Delays in logistics or port handling

How to Overcome These Export Challenges

Use export management software, partner with experienced freight forwarders, and maintain transparent communication with buyers.

Case Study – Successful Indian Terry Towel Exporter to USA

Trident Group, a leading Indian exporter, successfully penetrated the U.S. market by focusing on organic cotton production and sustainable branding. Their partnership with major U.S. retailers showcases the potential for Indian towel exporters who focus on quality and innovation.

Future Opportunities in Terry Towel Exports

Emerging trends include bamboo fiber towels, organic cotton, and recycled textiles. As U.S. consumers become more eco-conscious, Indian exporters who adopt sustainable practices stand to gain a competitive advantage.

Frequently Asked Questions (FAQs)

Q1. What licenses are needed to export Terry Towels from India?
You need an IEC Code, GST registration, and export license from DGFT.

Q2. Which ports are best for exporting Terry Towels to the USA?
Major export ports include Nhava Sheva (JNPT), Chennai, and Tuticorin.

Q3. How can I find U.S. buyers for Terry Towels?
Use online B2B marketplaces, attend textile trade fairs, or connect via export councils like TEXPROCIL.

Q4. What are the main quality certifications required?
Oeko-Tex, GOTS, and ISO certifications are highly recommended.

Q5. How long does shipping to the USA take?
Sea freight usually takes 25–35 days, depending on the route.

Q6. What are the import duties on Terry Towels in the USA?
Import duties range from 6.7% to 9.1% based on HS code and product type.

Conclusion – Final Thoughts on Exporting Terry Towels

Exporting Terry Towels from India to the USA is a highly lucrative opportunity for textile entrepreneurs. With India’s strong manufacturing base, competitive pricing, and sustainable options, Indian exporters can tap into the booming U.S. market efficiently. By adhering to quality standards, documentation protocols, and smart marketing, you can establish a successful and scalable export business.