How to compare Georgian apparel landed cost

01

A worked Georgia cost build-up

This is an illustrative model for a 10,000-unit cotton knit top delivered to an EU distribution center. The figures are dated 18 September 2026 and are assumptions, not market benchmarks or supplier quotes. Their purpose is to show the arithmetic a buyer should replace with live quotations.

If the garment qualifies for the EU preference and the required origin proof is accepted, the model carries zero duty. If it does not qualify and the applicable third-country rate is assumed at 12 percent for this example, duty adds about US$0.97 on an illustrative US$8.05 customs-value base, taking modeled landed cost to US$9.74. The exact rate, customs value and origin rule must be checked for the destination and HS code in Access2Markets.

The useful conclusion is not that Georgia costs US$8.77. It is that origin treatment, freight allocation and a small change in conversion cost can reverse a comparison. A serious model keeps every assumption dated, sourced and editable.

02

Normalize the commercial quote

Start by identifying what the quoted price includes. For apparel, the largest misunderstandings usually sit in fabric, trims, labels, packaging, testing, development and freight to the export point. Mark every line as included, excluded or buyer-supplied.

A usable unit-cost bridge is: factory price, plus origin inland freight and export charges, plus international freight and insurance, plus duty and import costs, plus destination delivery, plus quality, financing and inventory allowances. Keep each component visible. Do not bury risk allowances inside a single percentage.

03

Hold fabric and trims constant

Georgia's apparel proposition may involve fabric and trims sourced from Türkiye, the EU or Asia. If the Georgian factory is quoting CMT while the Turkish or Vietnamese factory quotes full package, the sewing rates are not comparable. Give every supplier the same bill of materials and state who buys, finances, inspects and transports each input.

Model material yield and waste separately. A factory with a higher CMT rate can still win if marker efficiency, cutting control or lower rework reduces total material consumption. For programs using imported fabric, add the inbound material freight, customs process, buffer inventory and cash tied up before production begins.

04

Test preferential origin at the HS-code level

Georgia has a Deep and Comprehensive Free Trade Area with the European Union, but the preference is not automatic. The finished garment must satisfy the applicable product-specific rule of origin and be supported by the required proof. Imported fabric can change the answer.

Run the exact HS code and origin scenario through the European Commission's Access2Markets portal. Repeat the test for Türkiye, Portugal and Vietnam using the actual destination country. Portugal's EU position, Türkiye's customs relationship with the EU and Vietnam's trade agreements create different documentation and origin questions. Have a customs professional confirm the conclusion before award.

05

Model the route, not a country average

For a Georgian factory, identify the production city, consolidation point, border or port, sailing or trucking schedule and final delivery node. Poti and Batumi are not interchangeable for every carrier or cargo, and an inland Tbilisi factory has a different cost than a western Georgian operation. Quote the real lane.

Use door-to-door days and variability, not advertised transit alone. Include booking lead time, consolidation, customs, port dwell and final-mile delivery. Then cost the safety stock needed to protect the buyer's service level. A shorter but irregular lane can require more inventory than a longer, predictable one.

06

Price working capital and failure cost

Payment terms, material deposits and production timing change the cash cost of a program. Calculate when cash leaves the buyer and when the finished unit becomes saleable. Include the financing period for buyer-owned materials and goods in transit.

Add a quality allowance based on the proposed inspection and claims process. A new supplier may require more development samples, on-site oversight and pre-shipment inspection. Also model the cost of a late or failed launch. A small unit-price advantage disappears quickly if the buyer must air freight replacements or hold duplicate inventory.

07

Read the four sourcing propositions correctly

These are starting hypotheses, not cost conclusions. The winning country changes by garment, fabric origin, order size, destination, calendar and buyer risk tolerance.

08

Send one quote request

Require each supplier to return the same commercial fields: legal entity and factory, price basis, fabric and trim responsibility, MOQ by style and color, sample charge, sample and production lead time, monthly available capacity, payment terms, Incoterm, packaging, test responsibility, certificate scope and quote validity.

For Georgia, add the fabric route, intended origin basis and export point. Ask the supplier to identify any materials that would prevent preferential origin. Then compare the four countries in one model with visible assumptions and a sensitivity case for freight, duty, yield, defects and demand.