When Fashion Meets Bureaucracy: Our Journey Through Tariffs & Quotas - Vol 5

Duties and tariffs are making headlines these days, but truth be told, they've always been part of our story. From the very beginning—more than 40 years ago—we've been paying 12-14% duty on goods, depending on fabric content and garment type. This was to protect the cotton and fashion industry in the US and made sense and was fair. But the 50% over the 12 -14% is cruel and is killing us.

Back then, there was also something called quotas. The U.S. decided how many tops, pants, or jackets could be imported from each country—not based on how much a country could produce, but partly on political relationships. (Fashion diplomacy at its finest!) India, of course, had its own complicated system for divvying up quota space, which added another layer of bureaucracy.

Luckily, there was one loophole: no quota for "Traditional Indian Garments." So we got creative. Some of you long-time customers might remember the Raj Jacket with its tie closures. Those weren't just a design choice—they were our ticket into the "traditional" category! Same with drawstring pants/salwars. At first, we added them to satisfy the quota police, but customers loved them so much they became a signature look. Sometimes necessity really is the mother of fashion trends.

When quotas were finally abolished, it gave us freedom to design without those restrictions. Still, exporting remains a complex business. Every shipment involves endless paperwork, rules, and procedures. But our team in Mumbai handles it like pros. The women inspect every garment, pack them carefully, record the quantities, and prepare the packing lists that form the backbone of export papers—and of payments to the cooperatives. It's no small job, but they do it with precision.

Tariffs and duties feel heavy and discouraging right now, especially with the 50% additional tariffs. These kinds of costs make it nearly impossible to innovate in the way we'd like. But what has always kept us going is creativity, resilience, and—most importantly—the support of customers like you. Every time you choose MarketPlace, you're helping us continue this work and ensure that the women's livelihoods remain strong, even in tough times. Together, through both support and spreading the word, we can face these challenges and carry the story forward.

SHARE WITH THE ARTISANS:
• Do you own a Raj Jacket or Salwars/Pant with drawstring?
• Does knowing the story behind a garment make you like it more?
• Did you realize exporting clothes involves so much paperwork?
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