recent trends and regulatory update for exporting apparel and footwear products to emerging markets

36 Pages·2014·1.15 MB·English

RECENT TRENDS AND REGULATORY UPDATE FOR
EXPORTING APPAREL AND FOOTWEAR PRODUCTS TO
EMERGING MARKETS
July 2014
Christy Chan
TABLE OF CONTENTS
Section Content
1 STAY COMPETITIVE IN THE INDUSTRY
2 RESTRICTED SUBSTANCES OVERVIEW FOR APPAREL AND
FOOTWEAR
3 SOLUTIONS TO THE MARKET
STAY COMPETITIVE IN THE INDUSTRY
MARKET SITUATION

 Consumer safety in spotlight

 Marks deliver trust

 Corporate Social Responsibility (CSR)
more concerned

 More green commitments
HOW TO BE SUSTAINABLY SUCCESSFUL?
Buyer/Customer
System
Regulatory
expectation
Improvement
compliance
How could YOU stay competitive?
New markets
VALUE ADDING IN THE SUPPLY CHAIN
RAW MATERIAL PROCUREMENT DESIGN MANUFACTURING
Is it extracted in a Is the material Is it a eco-friendly Is the worker condition
sustainable way? hazard-free? design? compliant with regulation?
END OF LIFE RETAIL OVERALL CONTROL PACKAGING
Is there any Is the service up to Are the goods ok for Is the package non-
recycle system ? standard? shipment ? excessive and green ?
REGULATIONS THROUGH THE
EMERGING MARKETS: THE TREND
CURRENT MARKET CHALLENGES
 Global Regulatory Challenges
• More and more countries are imposing regulatory requirements for the
presence of residual chemicals in textile and footwear products.
• Brands and retailers need to meet differing requirements in order to gain
global market access.
• National governments conduct surveillance to ensure compliance.

 NGO Challenges
• NGOs conduct market surveillance to ensure products are safe to use.
• Most remarkable campaign (known as DETOX) was launched.
• Emails, online social media (facebook, twitters), letters, street-side
campaigns aim to raise awareness amongst consumers.
• This campaign initiated fundamental changes within the textile supply chain
RECENT RECALL CASES WORLDWIDE

Azo dyes Laceration Hazards
EU RAPEX RECALL US CPSIA RECALL
303 mg/kg Contains Sharp Edge

 Product: Children’s jeans  Product: Children’s Shoes
 Date: 27 Dec 2013  Date: 20 Feb 2014
 RS Requirement:  Requirement: No Sharp Edge
Azo dyes: 30 mg/kg each  Corrective Actions: Product recall
 Corrective Actions:  Country of Origin: China
Voluntary recall by suppliers
 Country of Origin: Bangladesh

Phthalate Formaldehyde
TAIWAN RECALL
CHINA RECALL
38.2% DEHP 646 mg/kg

 Product: Infant’s walking shoes
 Product: Children’s leather coat
 Date: 1 April 2013
 Date: 12 Nov 2013
 RS Requirement: Phthalate (DEHP+DBP+BBP+
 RS Requirement: Free formaldehyde (150 ppm limit)
DINP+DIDP+DNOP≤ 0.1%w/w)
 Corrective Actions: Does not say, but general footwear
 Other violation: No labelling and Country of Origin
buying tips have been given to consumers
Information
 Country of Origin: China
 Corrective Actions: Product seizures

 Country of Origin: Unknown

Sources:
1. EU RAPEX: http://ec.europa.eu/consumers/dyna/rapex/rapex_archives_en.cfm 3. China AQSIQ: http://cpzljds.aqsiq.gov.cn/ (Chinese only)
2. US CPSIA: http://www.cpsc.gov/cpscpub/prerel/prerel.html 4. Taiwan BSMI: http://www.bsmi.gov.tw/wSite/index.jsp (Chinese only)
WHEN EAST MEETS WEST
Japan established Japanese Law 112, with the earliest textile
1970s
chemical regulation for Formaldehyde in apparel in Asia
India is the second Asian country launching chemical regulation.
1990s
Certain Azo Dyes are banned in textile and apparel.
Introduction of China GB 18401-2003 in textile products
2000s
includes the restriction of Azo Dyes, Formaldehyde and pH value
More new regulations entered into force
» Korea (KC Mark)
» Taiwan (CNS 15290)
» Egypt Regulations
» Vietnam (Circular 32/2009/TT-BCT)